GGRAsia – Wynn Macau Ltd subsidiary restructures loan terms
Wynn Macau Ltd subsidiary restructures loan terms
Macau casino operator Wynn Macau Ltd has announced changes to the borrowing terms of its main subsidiary, Wynn Resorts (Macau) SA. Wynn Macau Ltd told the Hong Kong Stock Exchange on Friday that the maturity dates of a $ 2.3 billion term loan and a $ 750 million revolving facility have been pushed back. The rates and repayment schedule of the term loan have also changed.
Wynn Macau Ltd said parties to the deal – including its US parent company Wynn Resorts Ltd, a syndicate of lenders and the Macau branch of Bank of China Ltd as arranger and chief agent – agreed to the changes. .
The stock exchange disclosure also revealed that Wynn Resorts Macau had borrowed the entire US $ 2.3 billion loan and US $ 625 million from the revolving facility. Wynn Macau Ltd said the senior secured bank facilities are still worth the equivalent of $ 3.05 billion.
The parties have agreed that the term loan must now be repaid in progressive quarterly installments of between 2.875% and 4.5% of the principal amount, effective September 30, 2020, with the last installment of 75% being repayable by September 26, 2020. June 2022 or so. Previously, repayments were made in progressive quarterly installments of between 2.5% and 7.33% of the principal amount, as of this month, with the last payment of 50% of the principal being repayable in September 2021.
Borrowings under the revolving credit facility must now be repaid by or around June 26, 2022, instead of September 2020.
Annual interest on the Term Loan and Revolving Facility borrowings is payable at the London Interbank Offered Rate or the Hong Kong Offered Interbank Rate plus a margin of 1.5% to 2.25%, according to the financial leverage ratios and the currency concerned.
A drop last month in the stock prices of Wynn Macau Ltd and its US parent company Wynn Resorts Ltd followed dark remarks made by a Wynn Resorts executive about a contraction in VIP gaming activity in Macau in the fourth quarter.