Wynn Resorts raises USD900 million to refinance 2027 debt as expansion spending lifts leverage

[Photo: Renato Marques]

Wynn Resorts has priced USD900 million of senior notes due in 2035 to refinance debt maturing next year, extending its maturity profile as capital commitments in Macau and the United Arab Emirates are expected to keep leverage elevated.

Wynn Resorts Finance LLC and Wynn Resorts Capital Corp., indirect wholly owned subsidiaries of the casino group, priced the notes at a 6.875% coupon in a private offering. The transaction is expected to close on or about Sept. 22, subject to customary conditions.

The proceeds, along with cash on hand, will be contributed or lent to Wynn Las Vegas LLC to redeem its outstanding 5.25% senior notes due in 2027 and cover transaction costs.

On Thursday, Fitch Ratings assigned the new senior unsecured notes a long-term rating of “BB-” and a recovery rating of “RR4.” The rating agency described the refinancing as “leverage neutral” because the proceeds will replace existing debt rather than directly finance new development.

Fitch projects that the group’s EBITDAR leverage will rise to 6.0 times in 2026 from 5.8 times in 2025, driven by its contribution to the Wynn Al Marjan Island resort in Ras Al Khaimah and planned expansion at Wynn Palace in Macau. “Wynn’s ratings reflect its high-quality gaming portfolio, strong positions in Macau and Las Vegas that target high-value customers and robust liquidity to fund near-term capital projects,” Fitch said.

“These strengths are balanced against modest diversification and sizable capital needs for current and potential projects, which could slow credit improvement.”

Fitch said Wynn had $1.573 billion in cash and $527 million in short-term investments as of June 30, alongside $1.03 billion of revolving-credit availability at Wynn Resorts Finance and $1.35 billion at WM Cayman Holdings Ltd. II.

Moreover, the agency expects the group to remain mostly free-cash-flow positive during the forecast period, but does not anticipate a material reduction in debt because leverage is expected to improve mainly through EBITDA growth.

Regarding Wynn Macau Ltd., Fitch expects the two properties, Wynn Macau on the peninsula and Wynn Palace in Cotai, to post mid-single-digit EBITDA growth in 2026 and modest growth through 2029.

“Macau should provide upside,” Fitch said, while noting that the market remains highly competitive. It projects that growth will be supported by higher revenue but constrained by “continued uncertainty in the Chinese economy” and “continued promotional competition.”

In May 2026, Wynn Resorts announced plans for The Enclave at Wynn Palace during its first-quarter earnings call. The expansion includes a 432-suite hotel tower, as well as a new event center and theater at the Wynn Palace Macau site. Fitch Ratings remarked in its update that it expects the event center and theater to open in 2028, followed by the hotel tower in 2029.

The Macau investment is being undertaken alongside Wynn’s 40% stake in the $5.7 billion Wynn Al Marjan Island project, scheduled to open in September 2027. The estimated cost associated with the UAE development has risen by $600 million, which Fitch attributed to the conflict in the Middle East and project enhancements. Wynn’s expected contribution is about $1.3 billion.

Fitch said it expects Wynn to receive about $260 million in annual cash distributions, management fees and license fees from Al Marjan at a steady state, consistent with company guidance. It also expects the project to be credit-positive after opening, citing limited local competition, favorable demographics and its appeal to high-value customers, while cautioning that construction costs, timing and demand remain risks.

“Fitch views the project to be credit-accretive post-2027 given the unique aspects of the property’s location and brand,” the agency said. Assuming the resort reaches Fitch’s base case, leverage could decline to 5.4 times in 2028 on a steady-state basis.

In its peer analysis, Fitch compared Wynn with MGM Resorts International, also rated “BB-” with a stable outlook, and Las Vegas Sands, rated “BBB” with a stable outlook. MGM has greater scale and diversification, Fitch said, while Las Vegas Sands (LVS) has a larger Macau footprint and lower projected 2026 leverage of 3.3 times, compared with Wynn’s 6.0 times.

Fitch said Wynn’s rating could come under pressure if EBITDAR leverage remains above 6.0 times or if fixed-charge coverage falls below 2.5 times. An upgrade would require leverage to decline below 5.0 times, fixed-charge coverage above 3.0 times and continued strong liquidity.