Wynn Resorts Limited, the parent company of Wynn Macau, announced overnight that a tender offer for cash by wholly-owned subsidiary Wynn Resorts Finance, LLC for all outstanding US$600 million aggregate principal amount of 7.750% Senior Notes due 2025 of Wynn Resorts Finance and Wynn Resorts Capital Corp had received US$506.4 million of valid tenders.
As a result, Wynn Resorts Finance has accepted for payment all 2025 notes validly tendered prior to the expiration date of 5pm on 15 February. The company confirmed that, on 16 February, those who validly tendered had received an amount of US$1,024.50 for each US$1,000 principal amount of 2025 Notes, plus accrued and unpaid interest from the last interest payment date.
Wynn first announced its US$600 million tender offer on 9 February, at which time it also revealed a private offering of US$600 million Wynn Resorts Finance 7.125% Senior Notes due 2031.
It said at the time that it planned to use the net proceeds from the offering, together with cash on hand, to purchase the 2025 notes, redeem any 2025 notes that remained outstanding and to pay related fees and expenses.
Moody’s Investors Service last week assigned a B2 rating to Wynn’s private offering, explaining the rating reflects earnings weakness from the COVID-19 pandemic but also Wynn’s strong track record in integrated resort operations.
“Wynn’s good liquidity and relatively low cost of debt capital also support the ratings,” Moody’s said.
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