Wynn Resorts Ltd . (NASDAQ:WYNN), through its subsidiary Wynn Las Vegas, LLC, has entered into a non-prosecution agreement (NPA) with U.S. federal authorities, forfeiting $130 million related to an investigation into illegal money transmissions.
The agreement, announced today, concludes a multi-year inquiry by the United States Attorney’s Office for the Southern District of California and the Department of Justice (DOJ) into transactions involving certain foreign patrons facilitated by unlicensed third parties.
The NPA stipulates that Wynn Las Vegas will not face criminal charges provided it fulfills its obligations, which include continuing enhancements to its compliance programs.
The DOJ recognized the historical nature of the transactions, the company's cooperation during the investigation, the severance of ties with implicated individuals, and the remedial measures already implemented by Wynn Las Vegas.
In other recent news, Wynn Resorts Ltd has reported significant financial developments and strategic advancements. The company announced an adjustment to the conversion price of the convertible bonds issued by its indirect subsidiary, Wynn Macau (OTC:WYNMF), Limited (WML), effective September 4, 2024, due to dividend payments. The new conversion price for the 4.50% convertible bonds due 2029 is HK$10.01212, down from HK$10.24375.
Wynn Resorts also revealed a record second-quarter EBITDA of $572 million, a figure attributed to strong performances across its properties and a significant reduction in gross debt by over $1.1 billion. Furthermore, Deutsche Bank (ETR:DBKGn) adjusted its outlook on Wynn Resorts, reducing the price target to $122 from $131, but maintained a Buy rating for the stock. The bank's analysis suggests the current valuation does not fully reflect the inherent value of Wynn Resorts' domestic assets.
Wynn Resorts is also making strides in its global expansion plans, particularly in the United Arab Emirates, with plans to finalize debt financing for the Wynn Al Marjan Island project in 2024. The company is optimistic about the fourth quarter, citing upcoming events like the F1 race and strong ADR growth.
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