S&P rates Wynn Resorts Finance notes BB, loan BBB-

S&P said it assigned BB rating and a recovery rating of 3 to Wynn Resorts Finance LLC’s (formerly Wynn America LLC) proposed $750 million senior unsecured notes due 2029. The 3 recovery rating indicates the agency’s expectation for meaningful recovery (capped at 50%-70%; rounded estimate: 65%) for noteholders in the event of a payment default.

S&P also assigned a BBB- issue-level and 1 recovery rating to the company’s planned $1.85 billion senior secured credit facility, consisting of an $850 million revolver and $1 billion term loan A, both due in 2024. The 1 recovery rating indicates S&P’s estimate for very high recovery (90%-100%; rounded estimate: 95%) for lenders in the event of a payment default.

Proceeds from the notes and the loan will be used to refinance its existing Wynn America revolver and term loan ($991 million outstanding as of June 30, 2019), to repay the existing Wynn Resorts term loan ($748 million outstanding as of June 30, 2019), to pay fees and expenses and for general corporate purposes.

“The proposed financing transaction is largely debt-for-debt, so it does not affect our forecast credit measures for Wynn,” said S&P in a news release.

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