In a recent filing, Wynn Resorts announced that they will have a private offering of $750 million of senior notes that will be due in 2029 for two of their wholly-owned subsidiaries, Wynn Resorts Finance LLC and Wynn Resorts Capital Corp. This move is part of a comprehensive plan to refinance and restructure the existing creditors of Wynn Resorts and Wynn America, LLC.
According to the planned restructure, Wynn Resorts Finance is looking to enter into a new first-lien term loan that will have an aggregate principal amount of about $1 billion, with a revolving first lien credit facility and a principal amount of $850 million. In addition, an internal restructuring will occur as well, where Wynn Resorts Finance will hold all of the ownership interests in Wynn Las Vegas, LLC, the company that owns and operates the Wynn Las Vegas Resort and Casino in Las Vegas.
Wynn Resorts Finance will guarantee the notes by combining all of their other domestic subsidiaries, which will include Wynn Las Vegas. Each of the subsidiaries will guarantee the existing senior notes.
This is actually quite an extensive restructuring plan. Once completed, Wynn Resorts Finance will hold all of the ownership interests of Wynn Resorts. Those ownership interests include Wynn Las Vegas, LLC, which owns and operates Wynn Las Vegas, but also include Wynn Group Asia which holds its 72% stake in Wynn Macau, as well as Wynn MA LLC which owns and operates the recently opened Encore Boston Harbor.
The Wynn Resorts Encore Boston Harbor recently celebrated their grand opening on June 23 and has celebrated a successful venture in its first few months of operation. Wynn Resorts has been looking to expand its operations in Macau, looking to open the $2 billion Crystal Pavilion, which was announced on July 12. While the area seems ripe for a new facility, many are concerned about the project, calling it a “bit aggressive.” It is unclear whether this new restructuring plan will affect this project in any way.
Included in the release by the statement, were forward-looking statements. These statements are related to the offering of notes and the closing of senior secured credit facilities. Forward-looking information involves information related to risks and uncertainties that could affect the results of the notes in the future. The risks involved include, but are not limited to, such things as management changes, spending, domestic and international economic conditions, as well as competition from other casinos and resorts. The filing may also include new laws and regulations.
