Macau casino operator Wynn Macau Ltd said in a Wednesday filing it expected to raise US$765.9 million net from an add-on issuance of senior unsecured notes valued at a principal amount of US$750 million, thanks to being able to charge investors a 3 percent premium on the principal amount.
Wynn Macau Ltd – which operates the Wynn Macau resort on the city’s peninsula, and Wynn Palace (pictured) in Cotai – reiterated commentary it gave in a Monday filing when it first announced the add-on notes plan, that it intends to use the net proceeds for “repayment of a portion of the amounts outstanding under the Wynn Macau [Ltd] credit facilities”.
As of November 30, Wynn Macau Ltd and subsidiaries had unrestricted cash and cash equivalents of US$2.1 billion.
Moody’s Investors Service Inc said in a Monday memo that the extra notes – to complement the US$600 million in 5.625 percent notes due in 2028 that Wynn Macau Ltd issued on August 26 – would not be a negative for the ratings of the related Wynn Resorts Finance Ltd and its ‘Ba3’ corporate family rating, because the exercise involved “largely debt for debt,” and was “leverage neutral”.
The new notes – with Deutsche Bank AG, Singapore branch, as the sole global coordinator – are likely to be listed in Hong Kong, and are only available to professional investors.
Jun 29, 2022Only two of Macau’s 18 satellite casinos – the Rio Casino and the President Casino – have closed amid changes to the city’s regulatory system for such properties, and against...
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Jun 29, 2022
"There is still no clarity about when border easing for Macau will occur. In the end these changes are needed to see a rebound for Macau business"
Vitaly Umansky, Louis Li and Shirley Yang
Analysts at brokerage Sanford C. Bernstein