Please ensure Javascript is enabled for purposes of website accessibility

Wynn Resorts Seeks to Raise Operating Cash With $350 Million Private Note Offering

By Rhian Hunt – Apr 7, 2020 at 2:07PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Still paying its employees after shutting down locations, the company looks to boost its resources.

Today, as the coronavirus pandemic continues to keep the industry largely non-operational, hotel and casino company Wynn Resorts (WYNN 0.74%) 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.

Slot machines at a Las Vegas casino.

Image source: Getty Images.

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."

Rhian Hunt has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Wynn Resorts, Limited Stock Quote
Wynn Resorts, Limited
WYNN
$67.05 (0.74%) $0.49

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
327%
 
S&P 500 Returns
105%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.