Wynn plans share offering
Wynn Resorts is jumping into a flurry of recent financial activity by some of the industry’s biggest names, announcing plans for a public stock offering.
Wynn, which operates two Las Vegas gambling resorts and two in Macau, filed documentation with the SEC that did not specify how many shares it will put on the market, or when, or how much the company hopes to raise.
The company currently has 120.2 million shares outstanding and a market capitalization of $12.68 billion, based on Monday’s close (NasdaqGS: WYNN) of $103.35.
Wynn’s Macau operations, which generate most of the company’s revenues, are separately traded on the Hong Kong stock exchange.
The announcement follows closely on a filing by privately held Harrah’s Entertainment to take a portion of the U.S. casino giant public in an offering the company hopes will raise $575 million for expansions and new developments.
MGM Resorts International (NYSE: MGM) got things going earlier this month by successfully selling more than 40 million shares in a public offering that generated $511 million to pay down debt and for other purposes.
Both Harrah’s and MGM are carrying heavy long-term debt loads, about $22 billion and $13 billion, respectively, and both have been moving aggressively to recapitalize. The latest of MGM’s moves includes plans for a private sale of $500 million in 10 percent unsecured senior notes due 2016 which will be used in combination with the share sale to pay off a $1.2 billion senior credit facility due October 2011. The note sale is expected to close on October 28.