By Paul Deckelman
New York, July 21 - Wynn Las Vegas, LLC and Wynn Las Vegas Capital Corp. successfully priced a $1.32 billion offering of 10-year first-mortgage bonds on Wednesday, high-yield syndicate sources said.
Proceeds are earmarked to take out an existing issue of bonds.
The new bonds priced at par to yield 7¾%, on the tight side of previously circulating price talk envisioning a yield of around 7 7/8%.
The issuers are wholly owned subsidiaries of Wynn Resorts, Ltd. The Las Vegas-based gaming company's Rule 144A/Regulation S offering, sold with registration rights, came to market via bookrunners Deutsche Bank, Bank of America Merrill Lynch, J.P. Morgan, Morgan Stanley, RBS Securities and UBS Investment Bank just hours after the company's morning new-deal announcement.
The bonds will be non-callable for the first five years after issue, with a standard call schedule after that. The new issue has not been rated yet, but Wynn expects to receive the same Ba3 rating from Moody's Investor's Service and BB+ from Standard & Poor's, which its current first-mortgage bonds carry.
The issuers plan to use the net proceeds from the bond deal, along with the proceeds of a capital contribution from parent Wynn Resorts, Limited, to fund a tender offer for all of Wynn Las Vegas LLC's nearly $1.318 billion of outstanding 6 5/8% first-mortgage notes due 2014, which the company announced separately but concurrently on Wednesday morning.
Wynn said that the notes will be considered senior secured obligations of the issuers and will be secured on an equal and ratable basis (with certain exceptions) by a first- priority lien on substantially all of the existing and future assets of the issuers and the guarantors - certain of Wynn Las Vegas, LLC's subsidiaries.
The company said that subject to prior approval from gaming authorities in Wynn's home base of Nevada, the notes will also be secured by a first-priority lien on the equity interests of Wynn Las Vegas, LLC. All of that same collateral currently secures borrowings under Wynn Las Vegas, LLC's credit facilities, the 2014 notes involved in the tender and the issuers' existing 7 7/8% first-mortgage notes due 2017 and 7 7/8% first-mortgage notes due May 1, 2020.
The new notes, which will mature on Aug. 15, 2020, will rank pari passu in right of payment with the aforementioned borrowings.
| Issuers: | Wynn Las Vega, LLC and Wynn Las Vegas Capital Corp.
|
| Face Amount: | $1.32 billion
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| Proceeds: | $1.32 billion
|
| Maturity: | Aug. 15, 2020
|
| Securities: | First-mortgage notes
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| Bookrunners: | Deutsche Bank Securities, Inc., Bank of America Merrill Lynch, J.P. Morgan Securities, Inc., Morgan Stanley & Co., Inc., RBS Securities Inc., UBS Investment Bank.
|
| Coupon: | 7¾%
|
| Price: | Par
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| Yield: | 7¾%
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| Spread: | 485 bps
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| Call features: | Non-callable for first five years of issue, then callable Aug. 15, 2015 at 103.75, at 101.875 on Aug. 15, 2016, at 100.9375 on Aug. 15, 2017 and finally at par on Aug. 15, 2018.
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| Trade date: | July 21
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| Settlement date: | August 4 (T+10)
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| Ratings: | Moody's: Ba3 (expected)
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| S&P: BB+
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| Distribution: | 144A/Regulation S with registration rights
|
| Price talk: | 7 7/8%
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