S&P gives Wynn notes B+

S&P said it assigned B+ issue-level and 3 recovery ratings to Wynn Resorts Finance LLC's anticipated $600 million of senior unsecured notes. The 3 recovery rating indicates meaningful (50%-70%; rounded estimate: 65%) recovery in default. WRF is a subsidiary of Wynn Resorts Ltd.

Wynn intends to use proceeds and balance sheet cash to repay $500 million of Wynn Las Vegas notes due May 2023, to refinance its $600 million of 7¾% WRF unsecured notes due 2025, also rated B+, and to pay debt breakage costs and transaction fees.

“The proposed refinancing is a net positive because it modestly reduces outstanding debt balances, lowers interest costs and improves cash flow, and extends Wynn's maturity profile. It also aligns with our expectation that the company could use a portion of the proceeds it received from the sale of Encore Boston Harbor real estate in December 2022 to repay debt,” the agency said in a press release.

The outlook is negative.

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