Wynn Macau Ltd has announced plans to conduct an offering of senior notes to professional investors, with the goal of paying down outstanding debt and for general corporate purposes.
The offering had not yet guaranteed it would proceed and the pricing and principal amount had not yet been determined, the company explained via a filing, adding that the proposal is subject to market conditions and investor interest. However, financial research firm CreditSights said in a note that the issue was expected to be in the amount of US$500 million.
Wynn said it had started the process of applying to the Hong Kong Stock Exchange for the listing of and permission to deal in the senior notes by way of debt issue to professional investors only, and has received an eligibility letter from the Stock Exchange for the listing.
In its filing, Wynn explained, “If the senior notes are issued, the company intends to apply the net proceeds from the proposed offering for general corporate purposes, including to repay outstanding indebtedness, such as that under the WM Cayman II Revolver and/or one or more series of the existing notes.
“The Board believes that there would be significant benefit to the company in effecting the proposed issuance and using the net proceeds for the intended purpose as it would extend the maturity profile of the group’s indebtedness.”
Wynn revealed last week that it expects to spend up to US$750 million through the end of 2026 on a series of upgrade and expansion projects at its Macau resorts, including development of a new large-scale events center at Wynn Palace plus upgrades to its premium gaming space at Wynn Palace and hotel room inventory at Wynn Macau.
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