Wynn America enters into $375 million revolver, $875 million term loan

By Marisa Wong

Madison, Wis., Nov. 20 – Wynn America, LLC, an indirect wholly owned subsidiary of Wynn Resorts, Ltd., entered into a credit agreement for a $375 million senior secured revolving credit facility due Nov. 20, 2019 and an $875 million delayed-draw senior secured term loan facility due Nov. 20, 2020, according to an 8-K filing with the Securities and Exchange Commission.

The term loan facility will require quarterly principal payments, scheduled to begin on June 30, 2018.

Amounts borrowed will bear interest at Libor plus 175 basis points. The annual fee Wynn America will be required to pay for unborrowed amounts, if any, under the revolver and term loan will be 0.30% per year.

The credit agreement contains financial covenants, including maintaining a maximum consolidated senior secured net leverage ratio and a minimum consolidated EBITDA.

Wynn America expects to use the proceeds of the credit facilities primarily for capital expenditures relating to the construction of a casino resort and related amenities in Everett, Mass., and for other general corporate purposes, including working capital, capital expenditures and permitted acquisitions.

Wynn America entered into the credit agreement on Thursday with Deutsche Bank AG New York Branch as administrative agent and collateral agent; Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Inc., Credit Agricole CIB, Fifth Third Bank, SunTrust Robinson Humphrey, Inc., Bank of Nova Scotia, BNP Paribas Securities Corp., Sumitomo Mitsui Banking Corp. and UBS Securities LLC as joint lead arrangers and joint bookrunners; Morgan Stanley Senior Funding, Inc. and Bank of China, Los Angeles Branch, as arrangers; Merrill Lynch, Pierce, Fenner & Smith Inc. as documentation agent; and Merrill Lynch, Pierce, Fenner & Smith, Credit Agricole, Fifth Third Bank, SunTrust Bank and Bank of Nova Scotia as syndication agents.

Wynn Resorts is a Las Vegas-based developer, owner and operator of destination casino resorts.

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