Wynn Macau Ltd’s operating properties have drawn down US$50 million from an available US$74 million under their revolving credit facility since the start of the month as they look to shore up cash reserves in the face of the COVID-19 pandemic.
Details of Wynn Macau Ltd’s financials were provided by parent company Wynn Resorts Ltd to potential investors on Wednesday (Macau time) following the announcement of a private offering of senior unsecured notes to the value of US$600 million by two Wynn Resorts subsidiaries.
In particular, Wynn Resorts highlighted the current cash reserves of its Macau operations, noting that its two properties – Wynn Palace and Wynn Macau – had around US$800 million of cash and cash equivalents, plus US$74 million of available borrowing capacity under their revolving credit facility, as of 31 March 2020.
However, US$50 million of that has since been drawn down, leaving US$24 million available for additional liquidity. Wynn Macau Ltd has an additional US$1 billion of cash and cash equivalents on hand.
Wynn Resorts also provided some insight into the scale of the impact COVID-19, which saw Macau’s casinos all closed for 15 days by order of the Chief Executive in February and visitation continue to suffer, has had on its Macau revenues.
Total operating revenues for the three months to 31 March 2020 are currently expected to be between US$912 million and US$969 million compared with US$1.64 billion in the prior year period, down by up to 44.4%. Likewise, Adjusted Property EBITDA excluding certain leased retail space directly owned by Wynn Resorts is expected to be between US$58 million and US$65 million compared to US$484.0 million for the three months ended 31 March 2019.
“During the closure period, we incurred approximately US$2.5 million per day of cash operating expenses, excluding cash interest expense of approximately US$0.5 million per day,” Wynn said. “Until such measures are lifted, we expect to continue to incur such cash costs in excess of the amounts we are earning at our properties.”
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