Wynn Macau issues US$750mln in senior notes to face pandemic

Gaming operator Wynn Macau announced that it issued US$750 million (MOP5.9 billion) in senior notes due 2026 with an interest rate of 5.500 per cent.

The company estimates that the net proceeds from the offering will amount to some US$743.1 million after deducting discounts and commissions, to be used for general corporate purposes until business recovers from the effects of the COVID-19 pandemic.

Wynn Macau recently revealed it has estimated to have generated between US$17.9 million to US$19 million in total operating revenues for April and May, which would represent a 97.5 per cent year-on-year reduction from the US$759.7 million registered on the same period last year.

The gaming concessionaire also has about HK$23 billion in credit revolving facilities, with the notes issuing to be also used to facilitate the repayment of a portion of Wynn Macau’s credit facilities.

The group already reached a purchase agreement with Deutsche Bank AG, as a representative of several purchasers, namely, BNU, Bank of China Limited, Macau Branch, Bank of Communications Co., Ltd. Macau Branch, BNP Paribas, BOCI Asia Limited, BofA Securities, Inc., DB Bank Ltd., ICBC (Macau) Limited, J.P. Morgan Securities plc, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc. and United Overseas Bank Limited, Hong Kong Branch.

Last week MGM China also announced that it reached a purchase agreement with several financial entities for US$500 million senior unsecured notes the gaming operator plans to issue on June 18.