LAS VEGAS - Wynn Resorts, Limited (NASDAQ: NASDAQ:WYNN) has announced the private offering of $800 million in senior notes due 2033 by its indirect wholly-owned subsidiaries, Wynn Resorts Finance, LLC, and Wynn Resorts Capital Corp. These notes will be guaranteed by the company's domestic subsidiaries that currently guarantee its existing senior secured credit facilities, with the exception of Wynn Resorts Capital, the co-issuer of the notes.
The senior notes and their guarantees are to be unsecured obligations, ranking equally with the issuers' and guarantors' existing and future non-subordinated liabilities. This includes obligations under their current senior notes due in 2029 and 2031. However, they will be subordinate to any secured debt, including the senior credit facilities and senior notes issued by Wynn Las Vegas, LLC.
Wynn Resorts Finance intends to use the net proceeds from the offering for a variety of purposes. A portion will be directed to its subsidiary, Wynn Las Vegas, to redeem their outstanding 5.500% Senior Notes due in 2025 and to cover related fees and expenses. The remaining funds are earmarked for general corporate purposes, which may include addressing a portion of the $130 million forfeiture under a non-prosecution agreement dated September 6, 2024.
The offering is being made in reliance on exemptions from registration requirements under the Securities Act of 1933. The notes will be available to qualified institutional buyers and certain non-U.S. persons in compliance with applicable laws. They have not been registered under the Securities Act or any state securities laws, and thus cannot be offered or sold in the United States without registration or an applicable exemption.
This press release does not constitute an offer to sell the notes or a solicitation of an offer to buy, nor will there be any sale of the notes in any jurisdiction where such an offer, sale, or solicitation would be unlawful.
Wynn Las Vegas has also indicated its intention to redeem all outstanding 2025 LV Notes following the closure of this offering. This announcement does not serve as a notice of redemption for the 2025 LV Notes.
The information in this article is based on a press release statement from Wynn Resorts.
In other recent news, Wynn Resorts Ltd . has seen significant financial developments and strategic advancements. The company reported a record second-quarter EBITDA of $572 million, a result attributed to strong performances across its properties and a substantial reduction in gross debt by over $1.1 billion. Additionally, through its subsidiary Wynn Las Vegas, LLC, the company entered into a non-prosecution agreement, forfeiting $130 million related to an investigation into illegal money transmissions.
Further, Wynn Resorts announced an adjustment to the conversion price of the convertible bonds issued by its indirect subsidiary, Wynn Macau (OTC:WYNMF), Limited. The new conversion price for the 4.50% convertible bonds due 2029 is HK$10.01212, down from HK$10.24375. 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.
Wynn Resorts is also advancing its global expansion plans, notably in the United Arab Emirates, with intentions to finalize debt financing for the Wynn Al Marjan Island project in 2024. These recent developments are part of the company's ongoing efforts to enhance its portfolio and strengthen its market position.
InvestingPro Insights
As Wynn Resorts (NASDAQ: WYNN) navigates the financial markets with its latest senior notes offering, investors are eyeing the company's performance metrics and market position. According to InvestingPro data, Wynn Resorts has a market capitalization of approximately $8.46 billion, reflecting its significant presence in the gaming and hospitality industry. The company's price-to-earnings (P/E) ratio stands at 9.9, which is adjusted to 8.6 when considering the last twelve months as of Q2 2024, indicating how much investors are willing to pay for a dollar of earnings. This P/E ratio could be seen as an attractive entry point for investors, especially when considering Wynn Resorts' impressive gross profit margin of 69.02% during the same period, which underscores the company's ability to maintain profitability amidst operational costs.
InvestingPro Tips highlight several key factors that could influence investor decisions. Wynn Resorts boasts a high shareholder yield, which could be appealing for those looking for returns on their investments. Additionally, the company's stock price movements have been quite volatile, trading near its 52-week low. This could present a potential opportunity for investors looking to buy in at a lower price point. Furthermore, analysts have taken a positive stance on the company's prospects, with seven analysts revising their earnings upwards for the upcoming period, and predicting that Wynn Resorts will be profitable this year, reinforcing confidence in the company's financial health.
For those interested in more detailed analysis and additional insights, InvestingPro offers a range of tips on Wynn Resorts, with a total of 7 additional tips available on their platform, which can be accessed at InvestingPro Wynn Resorts. These tips could provide investors with a deeper understanding of the company's financials and market potential.
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