Wynn Resorts Loans Macau Unit $500M

June 15, 2022 Macau Casino & Hotel Industry Updates

Wynn Resorts (NASDAQ:WYNN) is extending a $500 million credit facility to its Wynn Macau arm to shore up its finances.

According to a regulatory filing with the Hong Kong Stock Exchange, the credit revolver carries a two-year term and an annual interest rate of 4%.

The agreement highlights both Wynn Resorts and the company’s (Wynn Macau) confidence in the long-term growth potential of Macau and the availability of the facility further bolsters the company’s already strong financial position,” said the operators in the filing.

The announcement comes as Wynn Macau and other Macau concessionaires face ongoing obstacles in the world’s largest casino center. In April, operators in the special administrative region (SAR) posted gross gaming revenue (GGR) of just $331.2 million — the worst monthly tally since September 2020.

Wynn is providing its Macau arm with the credit facility to support “potential future working capital and other funding needs, if necessary.” As of June 14, Las Vegas-based Wynn Resorts owns approximately 72% of the issued share capital of Wynn Macau.

Follows Another Financial Move
Wynn Resorts extending the credit revolved to Wynn Macau comes about a month after the latter amended a $1.5 billion credit facility.

In May, Wynn Macau creditors, including Bank of China, “agreed to (i) waive certain financial covenants in the Facility Agreement in respect of the relevant periods ending on the following applicable test dates (a) 30 June 2022; (b) 30 September 2022; (c) 31 December 2022; and (d) 31 March 2023; and (ii) provide for a floor on the interest rate margin of 2.625% per annum through 30 June 2023,” according to a regulatory filing.