Wynn Macau Ltd, a Macau-based casino operator, earlier this week announced the issuance of additional notes. On December 15 the company revealed the offering is for $750m, with an interest rate of 5.625% per annum and payable twice a year. The maturity date for the notes is 26 August 2028. Additional notes will be consolidated and form a single series with $600m 5.625% senior notes that were issued on 26 August 2020 and are due in 2028.
As previously stated, the company “intends to use the net proceeds from the offering to facilitate the repayment of a portion of the amounts outstanding under the Wynn Macau Credit Facilities.” The announcement stated the net proceeds from the offering will be approximately $765.9m, including a premium of 3% of the principal amount of the additional notes, after deducting discounts and estimated offering expenses. The purchase agreement is with Deutsche Bank AG, Singapore Branch and the notes are available to professional investors only.
In the same statement, Wynn Macau said it had secured a long-term debt of $2bn on 30 September 2020. As reported by GGR Asia, Moody’s Investors Service stated the offering was “leverage neutral” and “largely debt for debt” and would not affect Wynn Resorts Finance’s ‘Ba3’ corporate family rating.
According to Moody’s: “The refinancing is credit positive, enabling the company to improve future funding flexibility by reducing the secured debt in its capital structure and extending the maturity profile.”