LAS VEGAS – Wynn Resorts, Limited (NASDAQ: NASDAQ:WYNN) has priced an $800 million private offering of 6.250% senior notes due in 2033 through its indirect wholly-owned subsidiaries, Wynn Resorts Finance, LLC and Wynn Resorts Capital Corp. The proceeds are earmarked for redeeming existing debt and general corporate purposes, including a potential $130 million forfeiture payment.
The company plans to allocate a portion of the net proceeds to its subsidiary, Wynn Las Vegas, LLC, for the full redemption of the 5.500% senior notes due in 2025. The remaining funds from the offering will be used for general corporate needs, which may cover a part of the forfeiture under a non-prosecution agreement filed with the SEC on September 6, 2024.
The offering is being made to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended, or to certain persons outside of the United States under Regulation S. The notes have not been registered under the Securities Act or any state securities laws and cannot be offered or sold within the U.S. without registration or an applicable exemption.
Wynn Las Vegas intends to redeem all outstanding 2025 notes following the close of this offering. This announcement does not act as a notice of redemption or an offer to purchase or sell the notes.
The forward-looking statements in the press release indicate that the completion of the offering is subject to market conditions and other factors. Potential risks that could impact Wynn Resorts' financial outcomes include changes in consumer spending, economic conditions, interest rates, legal proceedings, and the company's ability to meet debt obligations.
This news is based on a press release statement and has not been independently verified. The information provided does not constitute an offer to sell or a solicitation of an offer to buy the described notes.
In other recent news, Wynn Resorts has reported a record second-quarter EBITDA of $572 million, a milestone attributed to robust performances across its properties and a significant reduction in gross debt by over $1.1 billion. The company has also made strategic advancements, including an adjustment to the conversion price of the convertible bonds issued by its indirect subsidiary, Wynn Macau (OTC:WYNMF), Limited. The new conversion price for the 4.50% convertible bonds due 2029 has been revised to HK$10.01212.
In addition, Wynn Resorts has announced a private offering of $800 million in senior notes due 2033, intending to use the net proceeds for various purposes including general corporate purposes and addressing a portion of the $130 million forfeiture under a non-prosecution agreement. Deutsche Bank has adjusted its outlook on Wynn Resorts, reducing the price target to $122 from $131, but maintaining a Buy rating for the stock.
In global expansion news, Wynn Resorts has expressed intentions to finalize debt financing for the Wynn Al Marjan Island project in the United Arab Emirates in 2024. These recent developments are part of the company's ongoing efforts to strengthen its market position and enhance its portfolio.
InvestingPro Insights
As Wynn Resorts, Limited (NASDAQ: WYNN) ventures into refinancing its debt with a new senior notes offering, it's important to consider the company's financial health and market performance. InvestingPro data shows that Wynn Resorts holds a market capitalization of approximately $8.29 billion. The company's gross profit margins are notably high, standing at 69.02% over the last twelve months as of Q2 2024, reflecting strong operational efficiency in its casino and resort operations.
InvestingPro Tips highlight that Wynn Resorts has been subject to stock price volatility, trading near its 52-week low, which could be a point of interest for investors looking for potential entry points. Additionally, analysts have revised their earnings expectations upwards for the upcoming period, signaling confidence in the company's ability to grow its bottom line. This is further supported by the prediction that Wynn will be profitable this year, an important turnaround considering the company has already been profitable over the last twelve months.
Investors may find these insights particularly relevant as they weigh the potential risks and rewards associated with the company's latest financial maneuver. For more detailed analysis and additional InvestingPro Tips related to Wynn Resorts, interested parties can explore the full list of insights on the dedicated page for Wynn at https://www.investing.com/pro/WYNN.
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