By Abigail W. Adams
Portland, Me., March 3 – Wynn Macau Ltd., a subsidiary of Wynn Resorts Ltd., priced $600 million of six-year bonds convertible into Wynn Macau ordinary shares listed on the Stock Exchange of Hong Kong on Friday at par with a coupon of 4.5% and an initial conversion premium of 26.8%, according to a company announcement.
Deutsche Bank AG, Hong Kong Branch, Moelis & Co. and Goldman Sachs (Asia) LLC were joint global coordinators and bookrunners for the Rule 144A and Regulation S offering.
BofA Securities is also a joint bookrunner.
The bonds are non-callable until March 7, 2027 and then subject to a 130% hurdle.
They are putable on March 7, 2027 or upon a delisting or change-of-control event.
In connection with the offering, WM Cayman Holdings Ltd. I, holder of approximately 72% of Wynn Macau common shares, will enter into a stock borrowing and lending agreement to facilitate hedging activity.
The bonds will be listed for trade with the Hong Kong Stock Exchange.
Net proceeds are expected to be $586 million. Proceeds will be used for general corporate purposes.
Wynn Macau is a Macau-based owner and operator of gaming and entertainment facilities.
| Issuer: | Wynn Macau Ltd.
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| Amount: | $600 million
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| Issue: | Convertible bonds
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| Maturity: | March 7, 2029
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| Global coordinators: | Deutsche Bank AG, Hong Kong Branch, Moelis & Co. and Goldman Sachs (Asia) LLC
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| Bookrunner: | BofA Securities
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| Co-managers: | Bank of China Ltd. Macau Branch, ICBC (Macau), United Overseas Bank Ltd., SMBC Nikko, Scotiabank, BNP Paribas, Bank of Communication Co., Ltd. Macau Branch, Banco Nacional Ultramarino, SA
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| Coupon: | 4.5%
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| Price: | Par
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| Yield: | 4.5%
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| Conversion premium: | 26.8%
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| Conversion price: | HK$10.24; fixed exchange rate of HK$7.8497 to US$1
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| Call options: | Non-callable until March 7, 2027 and then subject to a 130% hurdle
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| Put options: | Putable on March 7, 2027 or upon a delisting or change-of-control event
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| Pricing date: | March 3
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| Settlement date: | March 7
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| Distribution: | Rule 144A and Regulation S
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| Stock symbol: | HKG: 1128
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| Stock price: | HK$8.08 at market close March 2
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| Market capitalization: | HK$40.49 billion
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