A Wynn Macau Ltd subsidiary – Wynn Resorts (Macau) SA – has increased the size of the group’s available senior secured bank facility by nearly 20 percent.
It raises the facility to US$3.05 billion or equivalent, an increase of US$550 million or equivalent, according to a company filing to the Hong Kong Stock Exchange before market opening on Wednesday.
Under the terms of the agreement with senior lenders, Wynn Macau has the option of asking that a further US$1 billion be made available, said the filing.
The firm stated the money would be used to refinance existing debt, to fund the construction and development of the US$4.1-billion Wynn Palace casino resort (pictured), and for general corporate purposes.
Wynn Palace is due to open on March 25, 2016, into a challenging market. There has been no announcement from the Macau government yet on how many new gaming tables the property will be granted.
Market-wide, Macau’s casino gross gaming revenue for the first eight months of 2015 was tracking at an aggregate 36.5 percent fall from the equivalent period in 2014, weighed down by factors including an anti-graft drive in China and a slowing economy there.
Wynn Macau’s senior secured bank facilities consist of an approximately US$2.3 billion or equivalent senior secured term loan facility and an approximately US$750 million or equivalent senior secured revolving credit facility.
The entire senior secured facilities are syndicated among a number of banks.
The final maturity dates of the facilities have also been extended under the amended agreement. The term loan is repayable in graduating instalments of between 2.5 percent to 7.33 percent of the principal amount on a quarterly basis commencing December 2018, with a final instalment of 50 percent of the principal amount repayable in September 2021, the year prior to the expiry of Wynn Macau’s current Macau gaming concession. The final maturity of any outstanding borrowings from the revolving facility is September 2020.
The term loan and borrowings under the revolving facility – consisting of both United States dollar and Hong Kong dollar tranches – will bear interest at the London Interbank Offered Rate (LIBOR) or the Hong Kong Interbank Offered Rate (HIBOR). plus a margin of 1.50 percent to 2.25 percent per annum. based on Wynn Resorts Macau’s leverage ratio.
Sep 19, 2018Nowadays, millennials, people who were born in the 1980s or...
Aug 16, 2018Food and drink have been heavily marketed as part of Macau...
Jun 27, 2018Macau’s gaming law needs to be amended in order to...
Nov 16, 2018Bringing e-Sports or virtual reality (VR) games into casinos is a “meaningful” experiment in diversification for casino operators, even in the Macau context, where the city’s casinos are...
Nov 16, 2018
"I am not going to speculate on what the [casino licence refreshment] tender requirements would be. I have full confidence and faith in the Macau government to treat everyone fairly"
Wilfred Wong Ying Wai
President and chief operating officer of Macau-based casino operator Sands China