Macau casino operator Wynn Macau Ltd has announced changes to the borrowing arrangements of its main subsidiary, Wynn Resorts (Macau) SA. Wynn Macau Ltd told the Hong Kong Stock Exchange on Friday that maturity dates for a US$2.3-billion term loan and US$750 million revolving facility had been pushed back. The rates and repayment schedule for the term loan have also changed.
Wynn Macau Ltd said the parties in the deal – including its United States parent Wynn Resorts Ltd, a syndicate of lenders and the Macau branch of Bank of China Ltd as lead arranger and agent – had agreed to the changes.
The disclosure to the stock exchange also revealed Wynn Resorts Macau had borrowed all of the US$2.3-billion loan and US$625 million of the revolving facility. Wynn Macau Ltd said the senior secured bank facilities were still worth the equivalent of US$3.05 billion.
The parties agreed that the term loan must now be repaid in graduating quarterly instalments of between 2.875 percent and 4.5 percent of the principal amount, beginning on September 30, 2020, with the final instalment of 75 percent repayable by June 26, 2022 or thereabouts. Previously the repayments were in graduating quarterly instalments of between 2.5 percent and 7.33 percent of the principal amount, starting this month, with the final instalment of 50 percent of the principal repayable in September 2021.
Borrowing under the revolving facility must now be repaid by June 26, 2022 or thereabouts, instead of in September 2020.
Annual interest on the term loan and borrowing under the revolving facility is payable at the London Interbank Offered Rate or the Hong Kong Interbank Offered Rate plus a margin of 1.5 percent to 2.25 percent, depending on leverage ratios and the currency involved.
A fall last month in the prices of shares in Wynn Macau Ltd and its U.S. parent Wynn Resorts Ltd followed gloomy remarks made by a Wynn Resorts executive about a contraction in the VIP gaming business in Macau in the fourth quarter.
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