Wynn Resorts Announces Final Results of Tender Offer for Cash by Wynn Las Vegas, LLC for its 5.500% Senior Notes due 2025

Rhea-AI Summary

Wynn Resorts, Limited (NASDAQ: WYNN) has announced the final results of its tender offer to purchase a portion of its outstanding 5.500% Senior Notes due 2025. The Tender Offer saw $680,986,000 in principal amount accepted for purchase out of the $800,000,000 tendered. The company is also redeeming $119,015,000 of the Notes on March 27, 2024.

Insights

Financial Analyst

Wynn Resorts' recent completion of a tender offer for a portion of its 5.500% Senior Notes due 2025 indicates a strategic approach to debt management. By repurchasing $680,986,000 of the outstanding notes, the company is effectively reducing future interest expenses, which could improve net income margins over time. The tender offer was set below the aggregate principal amount outstanding, suggesting a deliberate and conservative financial strategy. This move could be seen as positive by investors, as it may improve the company's debt profile and creditworthiness.

However, it's important to consider the liquidity position and whether the repurchase was financed by cash on hand or through new debt. If the latter, the interest rate and terms of the new debt could negate any potential benefits. Additionally, the market's response to such financial maneuvers can be mixed, depending on the perceived rationale and the company's overall financial health.

Debt Market Analyst

The acceptance of the tender offer at the full amount tendered suggests that the bondholders view the terms as favorable, or at least acceptable given market conditions. This could reflect an appetite for liquidity among investors or a belief that reallocating capital away from Wynn Resort's debt is advantageous at this time. It's also indicative of the current state of the credit markets and investor sentiment towards the hospitality and gaming industry.

Further scrutiny of the tender offer terms, such as the premium paid over the market price and comparison with industry benchmarks, would provide additional insights into Wynn Resorts' market positioning. The fact that the company is redeeming an additional $119,015,000 of the Notes on a subsequent date also suggests a phased approach to liability management, which could be a signal of strategic financial planning or a response to market conditions.

Investment Strategist

Wynn Resorts' decision to buy back debt ahead of maturity could be part of a broader capital allocation strategy aimed at optimizing the balance sheet. For stakeholders, the key question is whether this transaction is part of a shift towards more aggressive growth strategies, possibly funded by lower-cost capital, or a move to de-leverage in an uncertain economic environment.

Investors should also be aware of the potential impact on the company's stock. A successful tender offer often results in a temporary increase in share price due to perceived financial prudence. However, the long-term impact on the stock will depend on how the freed-up capital is reinvested and the company's ability to generate returns that exceed the cost of capital.

LAS VEGAS--(BUSINESS WIRE)-- Wynn Resorts, Limited (NASDAQ: WYNN) (“Wynn Resorts”) today announced the final results of the previously announced tender offer (the “Tender Offer”) by its indirect wholly-owned subsidiary, Wynn Las Vegas, LLC, to purchase a portion of Wynn Las Vegas, LLC and Wynn Las Vegas Capital Corp.’s outstanding 5.500% Senior Notes due 2025 (the “Notes”). The Tender Offer is subject to the terms and conditions set forth in the Offer to Purchase dated February 8, 2024 (the “Offer to Purchase”).

The following table sets forth, among other things, the principal amount of Notes validly tendered and accepted for purchase as of 5:00 p.m., New York City time, on March 8, 2024 (such date, the “Expiration Date”):

Title of Notes	CUSIP Numbers	Aggregate Principal Amount Outstanding	Tender Cap	Principal Amount Tendered at Expiration Date	Principal Amount Accepted for Purchase
5.500% Senior Notes due 2025	983130 AV7 U98347 AK0	$1,400,001,000	$800,000,000	$680,986,000	$680,986,000

The Tender Offer expired at 5:00 P.M., New York City time, on March 8, 2024 (the “Expiration Time”). Withdrawal and revocation rights expired at 5:00 p.m., New York City time, on February 22, 2024. Notes that have been tendered may no longer be withdrawn.

For Notes that were validly tendered after 5:00 P.M., New York City time, on February 22, 2024 but on or before the Expiration Time and that are accepted for payment and purchase, settlement will occur on the “Final Settlement Date,” which is currently expected to occur on March 11, 2024. Payment for the Notes that are purchased will include accrued and unpaid interest from the last interest payment date to, but excluding, the Final Settlement Date.

Wynn Las Vegas, LLC and Wynn Las Vegas Capital Corp. are also redeeming $119,015,000 of the Notes on March 27, 2024.

This press release does not constitute an offer to purchase or the solicitation of an offer to sell the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Deutsche Bank Securities Inc. and Scotia Capital (USA) Inc. are the dealer managers for the Tender Offer. Persons with questions regarding the Tender Offer should contact Deutsche Bank Securities Inc. by telephone at (855) 287-1922 (U.S. toll-free) and (212) 250-7527 (collect) or Scotia Capital (USA) Inc. by telephone at (833) 498-1660. Requests for copies of the Offer to Purchase should be directed to D.F. King & Co., Inc., the tender and information agent for the Tender Offer, at wynn@dfking.com, by telephone at (866) 796-3441 (U.S. toll free) and (212) 269-5550 (banks and brokers) or in writing at D.F. King & Co., Inc., 48 Wall Street, 22nd Floor, New York, NY 10005, Attention: Michael Horthman.

Forward-Looking Statements

This release contains forward-looking statements, including those related to the tender for Notes, the redemption and whether or not Wynn Las Vegas, LLC will consummate the Tender Offer or the redemption. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those we express in these forward-looking statements, including, but not limited to, reductions in discretionary consumer spending, adverse macroeconomic conditions and their impact on levels of disposable consumer income and wealth, changes in interest rates, inflation, a decline in general economic activity or recession in the U.S. and/or global economies, extensive regulation of our business, pending or future legal proceedings, ability to maintain gaming licenses and concessions, dependence on key employees, general global political conditions, adverse tourism trends, travel disruptions caused by events outside of our control, dependence on a limited number of resorts, competition in the casino/hotel and resort industries, uncertainties over the development and success of new gaming and resort properties, construction and regulatory risks associated with current and future projects (including Wynn Al Marjan Island), cybersecurity risk and our leverage and ability to meet our debt service obligations. Additional information concerning potential factors that could affect Wynn Resorts’ financial results is included in Wynn Resorts’ Annual Report on Form 10-K for the year ended December 31, 2022, as supplemented by Wynn Resorts’ other periodic reports filed with the Securities and Exchange Commission from time to time. Neither Wynn Resorts nor Wynn Las Vegas, LLC are under any obligation to (and expressly disclaim any such obligation to) update or revise their forward-looking statements as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240308452890/en/

Price Karr

702-770-7555

investorrelations@wynnresorts.com

Source: Wynn Resorts, Limited

FAQ

What is the ticker symbol for Wynn Resorts, Limited?

The ticker symbol for Wynn Resorts, Limited is WYNN.

What was the principal amount of Notes accepted for purchase in the Tender Offer?

The principal amount accepted for purchase in the Tender Offer was $680,986,000.

When did the Tender Offer expire?

The Tender Offer expired at 5:00 P.M., New York City time, on March 8, 2024.

Who are the dealer managers for the Tender Offer?

Deutsche Bank Securities Inc. and Scotia Capital (USA) Inc. are the dealer managers for the Tender Offer.

When is the Final Settlement Date expected to occur?

The Final Settlement Date is currently expected to occur on March 11, 2024.