Wynn Macau plans to raise US$750 million in fresh debt to help tide it through the Covid crisis.
The offering, conducted in consort with Deutsche Bank, consists of 5.5 percent senior notes due 2026 available to institutional investors, the funds earmarked for “general corporate purposes until business recovers from the effects of the pandemic, and then to facilitate the repayment of a portion of the amounts outstanding under the Wynn Macau credit facilities,” the company said.
Moody’s Investors Service assigned a ‘B1’ rating to the debt, which it said will cushion the company on a “cash burn” basis for a further two years.
Wynn Macau’s casino and twin-hotel complex on the Macau peninsula and its newer Wynn Palace resort on Cotai have suffered combined EBITDA losses in April and May of more than $244 million, a year on year decline of 157 percent, amid Covid-related travel restrictions that have slowed visitation to the Chinese casino hub to a trickle.
Through May, the market as a whole has seen its world-leading gaming revenues fall by more than 73 percent compared to the same period last year.
