This gambling company is giving its existing lenders a good hand, in a rare example of a junk-rated company that raises the guarantee of a loan.
Wynn Resorts (Macau) SA wants to tighten financial conditions on a $ 3.05 billion equivalent facility that, in the opinion of those familiar with the matter, should not be publicly speaking and should not be identified provides stronger protection for banks. This is unlike other borrowers who sought looser conditions.
The casino company had a tumultuous start to the year, with founder Steve Wynn still investigating sexual assertions regulators in February as chairman and chief executive officer. That did not prevent a jump in sales at the two flagship resorts in Macau, as the world's largest gaming hub is booming. Wynn Macao is seeing a significant increase in cash flows as the Wynn Palace property is experiencing disproportionate market share gains, "said Grant Govertsen, an analyst at Union Gaming Securities Asia, Macau Australia." Given the recent turbulence in Wynn Resorts' management, this step would go a long way to assure investors that the operations remain strong. "
A Wynn Macau representative could not immediately answer the problem over the phone.
Galaxy Entertainment Group Ltd. agreed to sell Wynn just under 5 percent last month, analysts speculating that Galaxy would be a potential admirer if Wynn would be offered for sale and could put Wynn in a more favorable position if regulatory authorities passed an E consider renewing their casino license.
Combined gross gaming revenues at Wynn Macau and Wynn Palace integrated resorts rose 21 percent over the previous year in January and February. Macau Casino's revenue increased 22.2 percent in March compared to the previous year, compared to estimates for a 17 percent gain.
Wynn Resorts lowers the maximum debt ratio, a measure of the total debt to profit before tax depreciation and amortization, for the loan to four times from 2020, while extending the term, people said. That's a multiple of 4.75 in 2018 and 4.25 in 2019. The deadline for the adoption of changes is 18 May.
– With the support of Jacqueline Poh and Daniela Wei