Wynn Macau said it has priced a $1 billion offering of senior notes due 2034, carrying an interest rate of 6.75 percent, as the casino operator moves to refinance debt and bolster its balance sheet.
The notes, priced at par, will be issued on August 19th and pay interest semi-annually on Feburary 15th and August 15th, the company said in a Hong Kong stock exchange filing late Tuesday.
Net proceeds are expected to be about $989 million, earmarked for general corporate purposes, including repayment of borrowings under its WM Cayman II revolving credit facility and other outstanding notes.
The offering was arranged by Deutsche Bank AG’s Singapore branch as representative of the initial purchasers, with BofA Securities, Scotia Capital and SMBC Nikko among joint global coordinators.
Other banks including Banco Nacional Ultramarino, Bank of China Macau and BNP Paribas acted as joint bookrunners. The debt will be listed in Hong Kong for trading by professional investors only.
The unsecured notes will rank side by side with Wynn Macau’s existing senior debt and include change-of-control and special put provisions, giving holders the right to demand repurchase at a premium under certain conditions, including loss of Macau gaming licences or major changes in ownership.
The operator recently announced a $500 million senior unsecured notes offering due 2034, with proceeds designated for general corporate purposes, including debt repayment and funding expansion projects totaling up to $750 million through the end of 2026.
Wynn Macau cautioned that completion of the purchase agreement remains subject to conditions and could be terminated if specific events occur, urging investors to exercise caution when dealing in its securities.
