Wynn Resorts, Limited has announced the pricing of a private add-on offering of $400 million aggregate principal amount of Wynn Resorts Finance 7.125% senior notes due 2031. The initial purchasers of the notes will offer the notes for resale initially at a price equal to 103.000% of the principal amount thereof, with an initial yield of 6.570%, plus accrued interest from February 15, 2024.
Wynn Resorts Finance plans to utilize the net proceeds from the offering, along with cash contributed by Wynn Resorts and/or borrowings under Wynn Resorts Finance's senior credit facilities, to facilitate various activities including repurchasing up to $800.0 million of the Wynn Las Vegas' 5.500% senior notes due 2025, paying related fees and expenses, and allocating the remainder, if any, for general corporate purposes.
The company's shares have moved -1.2%, and are now trading at a price of $104.8.
"We are pleased with the successful pricing of this offering, which will provide us with the necessary resources to support our strategic initiatives," said the management. "This offering reflects our commitment to optimizing our capital structure and pursuing opportunities for long-term growth."
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.
