Casino operator Wynn Macau Ltd estimates it will raise net proceedings of US$991.3 million from a recently-conducted note offering to professional investors.
The figure was disclosed on Wednesday in a filing to the Hong Kong Stock Exchange. It added that the note offering involved the issuing of US$1 billion 5.125-percent senior notes due 2029.
“The company conducted an offering of the notes to professional investors on December 10,” Wynn Macau Ltd said.
On Monday the company had flagged the planned fundraising but said as of that date the aggregate principal amount, terms and conditions of the notes were still to be determined.
On Wednesday the entity noted: “The company intends to use the net proceeds from the proposed offering to facilitate the repayment of a portion of the amounts outstanding under the Wynn Macau Ltd credit facilities, and for general corporate purposes.”
It added: “The board believes that there would be significant benefit to the company in effecting the proposed issuance and using the net proceeds for the intended purpose as it would lead to a reduction in the secured indebtedness of the group.”
The company runs the Wynn Macau casino hotel, on Macau peninsula, and the Wynn Palace casino resort (pictured) in the city’s Cotai district. The parent of Wynn Macau Ltd is Wynn Resorts Ltd, a United States-based casino operator.
The firm’s Macau casino licence expires in 2022. The senior notes now being issued by the company include a put option that gives note holders the right to require Wynn Macau Ltd – under certain circumstances – “to repurchase all or any part” of a holder’s notes at a purchase price in cash “equal to 100-percent of the principal amount… plus accrued and unpaid interest, if any, to but excluding the date of repurchase.”
That would apply if Wynn Macau Ltd were unable to keep its status as licensed gaming operator in Macau until the point of the notes’ maturity date in December 2029.
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"The idea that VIP [in Macau] would revert to its previous levels, I think that it’s clearly foregone, it’s not going to happen. But I anticipate that … the premium-mass and mass will be stronger than it has ever been”
Chief executive of Wynn Resorts