Moody’s Investors Service said this week that a proposed US$400 million add-on to Wynn Resorts Finance’s existing 7.125% senior unsecured notes will have no impact on Wynn’s existing ratings.
As reported by IAG, the offering of senior notes due 2021 will be used, along with cash on hand, to pay for a simultaneous buyback of US$800 million in notes due 2025.
In a note, Moody’s said it “views the transaction as leverage neutral while extending the debt maturity profile of the company and continuing to reduce debt at the WLV level.”
The ratings agency recently upgraded the outlook for Wynn Resorts Finance – the subsidiary of Wynn Resorts Ltd that holds all of its ownership interests in Wynn Las Vegas LLC, Wynn Asia and Wynn MA LLC – to stable due to the quality, popularity and favorable reputation of the company’s resort properties in Las Vegas, Macau and Boston.
Moody’s stated at the time that Wynn as a “well established and successful track record of building large, high quality destination resorts”, and outlined its expectation that key subsidiary Wynn Macau – of which Wynn Resorts holds a 72% stake – will “continue to recover, reducing leverage levels closer to pre-pandemic levels.”
Wynn last week reported net income of US$729.2 million and Adjusted Property EBITDAR of US$630.4 million for the three months to 31 December 2023, boosted by the recovery of its Macau operations.
