Wynn Resorts (NASDAQ:WYNN) announced today the sale of $800 million in corporate debt in a private offering to redeem bonds maturing in 2025 and to settle a $130.13 million fine recently imposed by the Department of Justice (DOJ). The newly issued senior notes carry an interest rate of 6.250% and will mature in 2033. These notes are guaranteed by all of Wynn Resorts Finance’s domestic subsidiaries, with the exception of Wynn Resorts Capital.
Wynn Las Vegas, LLC intends to utilize the funds to redeem in full the 5.500% Senior Notes due 2025 issued by Wynn Las Vegas and Wynn Las Vegas Capital Corp. Additionally, the proceeds will cover fees and expenses related to the redemption, and the remaining funds may be used for general corporate purposes, including possibly addressing the $130 million forfeiture as part of a non-prosecution agreement, as detailed in their Current Report on Form 8-K filed with the Securities and Exchange Commission in September 2024.
Last week, Wynn informed investors of a $130.13 million settlement with the Justice Department, marking the largest penalty ever applied to a single domestic casino based on admissions of criminal wrongdoing, according to the DOJ. While the company did not specify when the fine would be paid, indication that proceeds from the bond sale could be used for this purpose suggests the payment might be made promptly.
An investigation by the DEA, IRS, and the Department of Homeland Security’s investigative arm found that Wynn Las Vegas had violated multiple anti-money laundering regulations, allowing certain disreputable Chinese patrons to gamble at their venue. One case noted by the DOJ involved a Chinese individual who had previously served six years in prison for unauthorized international monetary transactions and other financial law violations being permitted to wager at Wynn Las Vegas.
As part of the non-prosecution agreement, Wynn Las Vegas admitted to the violations and assured the government of its extensive measures to strengthen its anti-money laundering protocols. The company also confirmed that the staff involved in the dubious transactions are no longer employed by Wynn.
Beyond addressing the DOJ penalty, the bond sale also enables Wynn to redeem bonds due next year. Wynn follows its rival MGM Resorts International (NYSE:MGM) in announcing new debt sales aimed at clearing up issues maturing in the near term. Though some analysts had previously considered such moves unnecessary given the gaming companies’ capacity to meet their 2025 obligations, Wynn’s actions underscore a proactive approach to financial management.
 has sold $800M in corporate debt to redeem bonds maturing in 2025 and settle a $130M DOJ fine. Discover more.){kind=link}