Wynn Resorts announces $800M senior notes offering

Wynn Resorts, Limited (NASDAQ: WYNN) announced a private offering of $800 million in senior notes due 2033 through its subsidiaries Wynn Resorts Finance, LLC and Wynn Resorts Capital Corp, on Tuesday Sept. 10. The 6.25% notes will be guaranteed by Wynn Resorts Finance’s domestic subsidiaries and will rank equally with existing senior unsecured obligations.

The proceeds from the offering will be used to redeem Wynn Las Vegas’ outstanding 5.50% senior notes due 2025, as well as cover related fees and expenses. According to the memo the remainder of the net proceeds will be allocated for general corporate purposes, which may include covering all or part of the $130 million forfeiture under the non-prosecution agreement with the U.S. Department of Justice (DOJ). The DOJ agreement relates to an investigation into transactions at Wynn Las Vegas involving foreign customers.

Fitch Ratings stated in a memo that Wynn Resorts’ ratings remain “unchanged” following the refinancing announcement, noting that the transaction will allow the company to extend its near-term bond maturities.

The offering is being made to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S of the Securities Act. The notes have not been registered under the Securities Act or any state securities laws, and cannot be offered or sold in the United States without registration or an applicable exemption.

This strategic move by Wynn Resorts aims to strengthen its financial position and support its ongoing operations and expansion plans, including the Wynn Al Marjan Island project in the United Arab Emirates.

Nadia Shaw