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.
Jan 17, 2022Stocks of Macau casino operators rose substantially in the Hong Kong market on Monday, after the local government announced on Friday a bill proposing a new regulatory system for gaming...
”There will be an explicit ban made against the sharing of casino revenue – in any form or agreement – between VIP gaming promoters and the [Macau gaming] concessionaires”
Macau Secretary for Administration and Justice