Leading gaming and hotel company Wynn Resorts announced last week that it has struck a deal with the US Department of Justice (DOJ). Wynn Las Vegas, a subsidiary of the company, will forfeit $130 million as part of this agreement to settle claims of financial malfeasance. Wynn Las Vegas acknowledged circumventing conventional banking channels in exchange for a non-prosecution agreement that resulted in this forfeiture—the largest made by a US casino company—ever.
New Senior Notes to Help Settle Fine
Additionally, Wynn Resorts revealed the terms of its $800 million senior notes, which have an interest rate of 6.250% and are due in 2033. Its subsidiaries will issue these senior notes in a private sale that is only open to particular institutional purchasers. A portion of the revenues will be used by the corporation to pay down the 5.500% senior notes that Wynn Las Vegas has due the following year. Wynn also conceded that a portion of the money might be used to offset the $130 million forfeiture that followed the DOJ settlement.
According to the company’s statement: “Wynn Resorts Finance plans to…use the remainder of the net proceeds for general corporate purposes, which may include covering all or a portion of the $130 million forfeiture under the non-prosecution agreement.”
The senior notes will not be offered to the public. Instead, they will only be available to institutions complying with Rule 144A under the Securities Act or international buyers under specific regulations. Wynn’s ability to handle its financial challenges highlights its strategic efforts to manage liabilities while maintaining corporate operations.
This settlement and the new senior notes reflect Wynn’s commitment to resolving legal issues while managing its financial obligations effectively.
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