S&P gives Wynn Resorts loan BB-

S&P said it assigned its BB- issue-level rating and 3 recovery rating to Wynn Resorts Ltd.'s proposed $400 million senior secured term loan due in 2024.

The recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 65%) recovery for lenders in the event of a payment default.

Wynn expects to use the proceeds for general corporate purposes, including repurchases of its stock, investments in subsidiaries, and/or capital expenditures.

“We expect the transaction to modestly increase Wynn's consolidated net leverage about 0.2x to the low-4x area from our previous 4x forecast,” S&P said in a news release.

“However, this represents a sizable cushion relative to our 6x downgrade threshold.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.