Wynn Macau expects US$740 million from new notes

The company run by Wynn Resorts has entered into an agreement with Deutsche Bank.

Macau.- Wynn Macau, operator of Wynn Palace and Wynn Macau, has issued a new series of senior notes.

The company, which is run by America’s Wynn Resorts, has entered into an agreement with Deutsche Bank’s Singapore branch in connection with the issue of US$750 million 5.500 per cent senior notes.

The notes are due 2026 and will offer the firm net proceeds of around US$743.1 million after deducting discounts, commissions and estimated offering expenses, according to a filling sent to the Hong Kong Stock Exchange.

The filing said: “The Company intends to use the net proceeds from the proposed offering for general corporate purposes until business recovers from the effects of the COVID-19 Pandemic, and then to facilitate the repayment of a portion of the amounts outstanding under the Wynn Macau Credit Facilities.”

The operator recently confirmed its April and May results were deeply impacted by the restrictions related to the Covid-19 pandemic.

The Macau casino was closed for a 15-day period in February and has since reopened but with health safeguards that restrict operations and travel bans limiting visitor numbers.

Wynn Macau lost an average of US$2 million per day amounting to a loss of around US$61 million a month.

When posting the results, the company announced it would propose a new series of senior notes to investors. It said: “If the Notes are issued, the Company intends to use the net proceeds from the proposed offering for general corporate purposes until business recovers from the effects of the Covid-19 Pandemic.”