Published on 4/7/2020 in the Prospect News High Yield Daily.
New Issue: Wynn Resorts prices upsized $600 million 7¾% five-year notes at par
By Paul A. Harris
Portland, Ore., April 7 – Wynn Resorts Finance LLC and Wynn Resorts Capital Corp. priced an upsized $600 million issue of five-year senior notes (existing B1/confirmed BB-) at par to yield 7¾% in a Tuesday drive-by, according to a market source.
The issue size increased from $350 million.
The yield printed 12.5 basis points inside of yield talk in the 8% area.
Deutsche Bank Securities Inc. is the left lead bookrunner. Goldman Sachs & Co. LLC, BofA Securities Inc., BNP Paribas Securities Corp., Citizens Capital Markets Inc., Credit Agricole CIB, Fifth Third Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc. and SunTrust Robinson Humphrey Inc. are the joint bookrunners.
The Rule 144A and Regulation S for life notes feature a make-whole call at Treasuries plus 50 basis points for the first two years and then become callable at a premium. They also feature a 35% equity clawback at par plus the coupon during the non-call period and a 101% poison put.
The Las Vegas-based developer and operator of high-end hotels and casinos plans to use the proceeds for general corporate purposes.
| Issuers: | Wynn Resorts Finance LLC and Wynn Resorts Capital Corp.
|
| Amount: | $600 million, increased from $350 million
|
| Maturity: | April 15, 2025
|
| Securities: | Senior notes
|
| Left lead bookrunner: | Deutsche Bank Securities Inc.
|
| Joint bookrunners: | Goldman Sachs & Co. LLC, BofA Securities Inc., BNP Paribas Securities Corp., Citizens Capital Markets Inc., Credit Agricole CIB, Fifth Third Securities Inc., JP Morgan Securities LLC, Mizuho Securities USA Inc., Scotia Capital, SMBC Nikko, SunTrust Robinson Humphrey
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 725 bps
|
| First call: | April 15, 2022 at 103.875
|
| Equity clawback: | 35% at 107.75 until April 15, 2022
|
| Trade date: | April 7
|
| Settlement date: | April 14
|
| Ratings: | Moody's: B1 (expected)
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8% area
|
| Marketing: | Drive-by
|
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