US casino operator Wynn Resorts Ltd says it expects to raise up to US$725 million from an underwritten public offering of common stock.
The offering, announced Monday, comprises 5.5 million shares of common stock but also grants the underwriters a 30-day option to purchase up to an additional 825,000 shares.
Wynn said it estimates the offering, which will be used for “general corporate purposes”, will raise net proceeds of US$630.6 million or up to US$725.2 million should the underwriters exercise their option in full. Those estimates are based on Wynn’s closing price of US$116.99 per share as of 5 February 2021.
The company’s latest fundraising initiative comes after last week it reported a net loss of US$269.5 million in 4Q20 on a 58.5% decline in operating revenues. Wynn’s Macau properties reported an operating loss of US$74.3 million but returned to positive EBITDA of US$39.4 million compared with an EBITDA loss of US$112.1 million in 3Q20.
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