Wynn Resorts Announces $800 Million Senior Notes Offering to Refinance Debt

Wynn Resorts, Limited, a leading global hospitality and entertainment company, has announced a significant move to refinance its debt through a private offering of $800 million in Senior Notes due 2033. This strategic decision aims to optimize the company's financial structure and position it for continued growth and success in the dynamic hospitality industry.

Unlocking Opportunities: Wynn Resorts Embarks on Debt Refinancing Initiative

Strengthening the Financial Foundation

Wynn Resorts Finance, LLC and its subsidiary Wynn Resorts Capital Corp., both indirect wholly-owned subsidiaries of Wynn Resorts, are spearheading the offering of these Senior Notes. The notes will be jointly and severally guaranteed by the company's domestic subsidiaries, with the exception of Wynn Resorts Capital, which is the co-issuer. This move aligns with Wynn Resorts' commitment to maintaining a robust and flexible financial structure, enabling the company to navigate the evolving market landscape and capitalize on emerging opportunities.The Senior Notes will be senior unsecured obligations, ranking equally with the company's existing liabilities, including its 5.125% Senior Notes due 2029 and 7.125% Senior Notes due 2031. However, the notes will be effectively subordinated to the company's secured debt, such as the existing senior credit facilities and senior notes issued by Wynn Las Vegas, LLC.

Optimizing Debt Portfolio and Enhancing Liquidity

Wynn Resorts Finance plans to utilize a portion of the net proceeds from the offering to contribute and/or lend funds to its subsidiary, Wynn Las Vegas. This capital will be used to redeem in full the outstanding 5.500% Senior Notes due 2025 issued by Wynn Las Vegas and Wynn Las Vegas Capital Corp. The remainder of the net proceeds will be allocated for general corporate purposes, which may include covering a portion of the $130 million forfeiture under the non-prosecution agreement.By refinancing its existing debt, Wynn Resorts aims to optimize its debt portfolio, improve its overall financial flexibility, and enhance its liquidity position. This strategic move aligns with the company's long-term vision of maintaining a strong balance sheet and positioning itself for continued growth and success in the hospitality industry.

Navigating Regulatory Compliance and Investor Engagement

The offering of the Senior Notes will be conducted through a private placement, with the initial purchasers offering the notes only to persons reasonably believed to be qualified institutional buyers or to certain persons outside the United States in reliance on Regulation S under the Securities Act. The notes have not been and will not be registered under the Securities Act or any state securities laws, ensuring compliance with the relevant regulatory frameworks.Wynn Resorts' commitment to transparency and investor engagement is evident in the company's decision to provide detailed information about the offering and its intended use of the proceeds. This level of disclosure underscores the company's dedication to maintaining open communication with its stakeholders and upholding the highest standards of corporate governance.

Mitigating Risks and Embracing the Future

As with any major financial transaction, the offering of the Senior Notes is subject to various risks and uncertainties. Wynn Resorts has acknowledged these potential challenges, including macroeconomic conditions, changes in interest rates and inflation, regulatory changes, and the ongoing impact of the COVID-19 pandemic on the hospitality industry.By proactively addressing these risks and implementing strategic measures to strengthen its financial position, Wynn Resorts demonstrates its resilience and adaptability. The company's forward-looking approach positions it to navigate the evolving industry landscape and capitalize on emerging opportunities, ultimately enhancing value for its shareholders and stakeholders.