Investors Bet On Wynn

18.03.2009, Casino operator raises $182M in equity.

Wynn Resorts may be faring better than its gaming peers in the down economy, but the casino and hotel operator needs to beef up its bank. Investors on Tuesday seemed willing to bet on it.

Las Vegas-based Wynn Resorts (nasdaq: WYNN - news - people ) priced a public offering of 9.6 million shares, or 8.6% of total shares outstanding, at $19.00 per share, in an effort to raise $182.4 million in capital for general corporate purposes, including paying off its debt. Chief Executive and billionaireStephen A. Wynn is the largest shareholder, with 43.4% of Wynn's stock.

The announcement came a day after Wynn announced its plan to sell 7.0 million new shares of common stock to finance cash for its debt and to support operations. Tuesday's offering, which priced the offering and upped the number of shares, is expected to close on Friday.

Wynn shares added 22 cents, or 1.1%, to trade at $19.87, in afternoon trading in New York, a premium of 4.6% to the secondary offering price. The expanded offering and the premium price indicated the issue was warmly received by investors.

The company did not specify how it would use the new funds, but analysts doubt the casino operator will engage in acquisitions. "Although there may be some opportunities to purchase assets over the next several months, we would be surprised to see Wynn pursue this, given its lack of a track record on acquisitions," noted Steven Kent of Goldman Sachs.

The analyst said the offering would not impact 2009 earnings, but would be moderately dilutive to 2010 and 2011 results. Kent cut his 2010 earnings estimate by just 2 cents, to 58 cents per share, in line with analyst estimates polled by Thomson Reuters, and cut his 2011 estimate by a dime, to $1.70, 6 cents below the consensus.

Kent affirmed a $23 price target.

The casino industry has been struggling as consumers have been less willing to take risks with their money amid job cuts, tight credit, a housing downturn and a bear market on Wall Street, which began as result of the subprime mortgage crisis. (See "Action Slows At Wynn," "Sands, Genting In A Singapore Sling" and "Game Over For Sands COO.")

Meanwhile, MGM Mirage (nyse: MGM - news - people ), which earlier this month said it may be facing default on its financial covenants in 2009, (See "MGM Mirage Needs To Deal,") is expected to post fourth-quarter results after the closing bell Tuesday, and investors expect the gaming operator to offer details on how it intends to avoid default.

MGM, controlled by billionaireKirk Kerkorian, will also face questions on financing prospects for its CityCenter project under construction on the Las Vegas Strip, where the company already operates 10 casino resorts. (See "MGM's CityCenter Shrinks.")

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Wynn Resorts to sell 7 million shares
Los Angeles - Casino operator Wynn Resorts Ltd said on Monday it has commenced a public offering of 7 million shares of its common stock.

Wynn said it intends to use the proceeds for general corporate purposes, including repayment of debt.

The company, based in Las Vegas, said it would grant to Deutsche Bank Securities Inc and Merrill Lynch & Co an option to purchase up to an additional 1.05 million shares. Deutsche and Merrill are acting as joint book running managers and underwriters for the offering.

Shares of Wynn, which fell 5.5 percent to close at USD 19.65 on Nasdaq on Monday, have fallen 84 percent since August.

Wynn said Moelis & Co was acting as its financial adviser in connection with the transaction.

Source: Reuters.com

Das Casino/Hotel 'Wynn Las Vegas' am Las Vegas Strip in Las Vegas USA wurde vom Immobilienmogul Steve Wynn finanziert und gebaut.

Das Wynn Las Vegas ist mit seinen 50 Stockwerken das zur Zeit das höchste Hotel in Las Vegas und mit den Baukosten von rund 2,7 Milliarden US Dollar eines der teuersten Hotels der Welt.

Das Grundstück umfasst ein 10'200 m2 grosses Spielcasino, einen 12'000 m2 grossen See, 18 Restaurants und Bars, 26 Geschäfte auf 7'000 m2, eine Kunstgalerie und zwei Hochzeitskapellen. Darüberhinaus gibt es ein 20'700 m2 grosses Konferenzzentrum. Es ist das einzige Hotel in Las Vegas, welches seinen Gästen einen Golfplatz mit 18 Löchern innerhalb des Komplexes zu Verfügung stellt. Für die Restaurants wurden eigens Spitzenköche engagiert.

Wynn Las Vegas Lage am Las Vegas Strip bietet einfachen Zugang zum Las Vegas Convention Center, Fashion Show Mall und Sands Expo Center. Unser von Tom Fazio und Steve Wynn entworfene Meisterschafts-Golfplatz kann ausschliesslich von Hotelgästen genossen werden. Alle unsere Tagungsräume bieten freie Sicht auf die luxuriösen Pools und Gärten oder den charakteristischen 18. Loch Golfplatz.

Das Casino bietet die gesamte Palette an Tischspielen, einschliesslich Blackjack, Big 6, Craps, Caribbean Stud Poker, Roulette, Let-it-Ride, Pai Gow Poker, Pai Gow, Three Card Poker und War. Als Gast unseres Resorts können Sie auch am Pool an der Cabana Bar Blackjack spielen.

Das Hotel liegt auf dem Gelände des abgerissenen Hotel/Casino «Desert Inn».

Besitzer ist die Firma Wynn Resorts Limited.

		
 
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