Wynn Resorts draws down new $800 million loan, repays via stock sale

By Sarah Lizee

Olympia, Wash., April 3 – Wynn Resorts, Ltd. and some of its subsidiaries entered into a credit agreement on March 28 that provides for an up to $800 million 364-day term loan facility, according to an 8-K filing with the Securities and Exchange Commission.

Deutsche Bank AG Cayman Islands Branch is the administrative agent, and Deutsche Bank Securities Inc. is the lead arranger and bookrunner.

Borrowings bear interest at Libor plus 275 basis points.

On March 28, the company borrowed the full amount available under the facility.

As previously reported, the company planned to use borrowings on the facility together with cash on hand to repay a promissory note previously issued to Aruze USA, Inc.

Proceeds were also used for other amounts due under the settlement agreement and mutual release dated March 8 between the company, Stephen A. Wynn, Linda Chen, Russell Goldsmith, Ray R. Irani, Robert J. Miller, John A. Moran, Marc D. Schorr, Alvin V. Shoemaker, D. Boone Wayson, Allan Zeman, Kimmarie Sinatra, Universal Entertainment Corp. and Aruze USA, Inc.

On April 3, the company used $915.8 million of proceeds from the sale of 5.3 million shares at $175 per shares of its common stock to repay all amounts borrowed under its 364-day term loan. Remaining proceeds will be used to repay other debt.

Wynn Resorts is a Las Vegas-based casino company.

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