Today, as the coronavirus pandemic continues to keep the industry largely non-operational, hotel and casino company Wynn Resorts (NASDAQ:WYNN) says it's making an offering of senior notes totaling $350 million. The notes are being issued by its subsidiaries, Wynn Resorts Finance and Wynn Resorts Capital, both parts of Wynn Resorts Capital Corp. The offering is private and the notes are due in 2025.
Wynn Resorts, like other gambling and hotel chains, has taken a financial thrashing from the reduced travel and stay-at-home orders used in an effort to combat the spread of COVID-19. Its share value nosedived by over 44% in March, following its closure of Encore, Wynn Las Vegas, and other properties on March 17.
The closures naturally didn't eliminate the company's financial obligations. At the time of its shutdown, Wynn pledged to continue paying all of its full-time employees. On April 1, it issued another statement indicating it is offering payroll continuance through May 15 for all of its workers, including part-time employees, in addition to hourly and salaried full-time workers.
This amounts to 60 days of full payroll expenses without any profits coming in, along with the additional upkeep needed to maintain its properties and meet debt obligations. Wynn Resorts says the $350 million raised by the senior notes sale will be used for "general corporate purposes," probably including the two months of payroll continuance. The notes are unregistered under the Securities Act of 1933 and will be offered to "qualified institutional buyers."