{"id":777002984,"date":"2023-03-03T08:48:32","date_gmt":"2023-03-03T11:48:32","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=777002984"},"modified":"2026-04-23T00:08:04","modified_gmt":"2026-04-23T03:08:04","slug":"wynn-macau-to-issue-us600m-in-convertible-bonds-due-2029","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/wynn-macau-to-issue-us600m-in-convertible-bonds-due-2029","title":{"rendered":"Wynn Macau to issue US$600m in convertible bonds due 2029"},"content":{"rendered":"\n

The company estimates that the net proceeds of approximately US$586m.<\/p>\n\n\n\n\n\n\n\n

Macau.- Wynn Macau Ltd<\/strong> has announced today (March 3) that it will issue convertible bonds due in 2029, worth US$600m. The company expects to receive around US$586m in net proceeds after accounting for commissions and other related expenses and the funds will be used for general corporate purposes. <\/p>\n\n\n\n

The bonds, which will be issued to professional investors, can be converted into shares at an initial price of HK$10.24 per share. Upon conversion, the bonds will turn into roughly 459.7m shares, which amounts to 8.8 per cent of total issued share capital as of 3 March.<\/p>\n\n\n\n

CBRE Securities told Macau Business that Wynn’s move is aimed at bolstering its balance sheet in Macau. The funds could be used to repay the US$600m of 4.875 per cent notes due in 2024. This would reduce the annual interest expense and extend the maturity by five years in exchange for a potential equity issuance of up to 40 per cent. <\/p>\n\n\n\n

JP Morgan analysts said the convert premium and 2029 maturity provide enough buffer and that the convertible bonds appear to be an economical way to enhance the balance sheet.<\/p>\n\n\n\n

Wynn Macau<\/a> has recently reported that its operating revenue for 2022 decreased by 52.2 per cent on year-on-year terms to MOP6.37bn (US$787.5m). Operating revenues decreased by US$473.75m at Wynn Palace<\/strong> and US$314.8m at Wynn Macau<\/strong> due to decreased gaming volumes resulting from travel restrictions related to the Covid-19 pandemic.<\/p>\n\n\n\n

The company had US$3.65bn in cash and cash equivalents, excluding restricted cash, as of December 31, 2022, and US$837m in borrowing capacity.<\/p>\n","protected":false},"excerpt":{"rendered":"

The company estimates that the net proceeds of approximately US$586m.<\/p>\n","protected":false},"author":176,"featured_media":25750,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Wynn Macau Ltd is issuing US$600 million in convertible bonds due 2029, with net proceeds of approximately US$586 million. This strategic financial maneuver aims to bolster the company's balance sheet, potentially facilitating the repayment of US$600 million in notes due 2024, thereby reducing annual interest expenses and extending debt maturity. The issuance, convertible into 8.8% of total shares, comes amidst a 52.2% year-on-year operating revenue decrease in 2022 due to pandemic-related travel restrictions.","focusai_entities":"Wynn Macau Ltd, CBRE Securities, JP Morgan","focusai_location":"Macau","focusai_target_profile":"ceo_executive (0.9), operator_casino (0.8), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Debt Refinancing Impact","query":"What are the precise implications of this convertible bond issuance on Wynn Macau's weighted average cost of capital and its capacity for future capital expenditure in the Macau gaming vertical?"},{"label":"Equity Dilution Analysis","query":"How does the potential 8.8% equity dilution from the convertible bonds impact existing shareholder value and the company's long-term earnings per share projections, considering the current market valuation?"}],"footnotes":""},"categories":[157,16338,158],"tags":[20777],"class_list":["post-777002984","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-east-asia-news","category-slider-home","tag-wynn-macau"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777002984","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=777002984"}],"version-history":[{"count":3,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777002984\/revisions"}],"predecessor-version":[{"id":777003000,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777002984\/revisions\/777003000"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/25750"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777002984"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777002984"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777002984"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}