Wynn Resorts, Limited has announced a private add-on offering of $400 million of Wynn Resorts Finance 7.125% senior notes due 2031. The notes will be issued as additional notes under a supplemental indenture to the indenture dated as of February 16, 2023, and will constitute the same series of securities as the $600 million 7.125% senior notes due 2031 issued on February 16, 2023.
Wynn Resorts Finance plans to use the net proceeds from the offering, together with cash contributed by Wynn Resorts and/or borrowings under Wynn Resorts Finance’s senior credit facilities, to repurchase up to $800 million of Wynn Las Vegas and Wynn Las Vegas Capital Corp.'s outstanding 5.500% senior notes due 2025 that are validly tendered and accepted for payment pursuant to Wynn Las Vegas' tender offer, to pay related fees and expenses, and for general corporate purposes.
Following this announcement, the company's shares have moved 7.2% and are now trading at a price of $107.06.
Wynn Resorts management is positive about the offering and its potential impact on the company's financial position. "We believe that this offering will provide us with the necessary resources to efficiently manage our outstanding debts and further strengthen our financial position," said a company spokesperson.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $6,718 | $6,611 | $2,096 | $3,764 | $3,757 | $5,696 |
| Revenue Growth | n/a | -1.59% | -68.3% | 79.58% | -0.18% | 51.63% |
| Operating Margins | 11% | 13% | -59% | -10% | -3% | 10% |
| Net Margins | 9% | 2% | -99% | -20% | -11% | 1% |
| Net Income (MM) | $572 | $123 | -$2,067 | -$756 | -$424 | $33 |
| Net Interest Expense (MM) | $382 | $414 | $556 | $606 | $651 | $745 |
| Depreciation & Amort. (MM) | $551 | $625 | $726 | $716 | $692 | $683 |
| Earnings Per Share | $5.35 | $1.15 | -$19.37 | -$6.64 | -$3.73 | $0.06 |
| EPS Growth | n/a | -78.5% | -1784.35% | 65.72% | 43.83% | 101.61% |
| Diluted Shares (MM) | 107 | 107 | 107 | 114 | 114 | 113 |
| Free Cash Flow (MM) | -$514 | -$162 | -$1,363 | -$513 | -$371 | $532 |
| Capital Expenditures (MM) | $1,476 | $1,063 | $290 | $291 | $300 | $356 |
| Current Ratio | 1.4 | 1.44 | 2.03 | 2.23 | 2.22 | 2.66 |
| Total Debt (MM) | $9,435 | $10,728 | $13,662 | $11,985 | $12,664 | $11,791 |
| Net Debt / EBITDA | 5.61 | 5.57 | -20.1 | 29.44 | 15.24 | 7.12 |
Wynn Resorts has declining revenues and decreasing reinvestment in the business, declining EPS growth, and a highly leveraged balance sheet. On the other hand, the company has an excellent current ratio of 2.66 working in its favor. Furthermore, Wynn Resorts has negative cash flows.
