WYNN FIRST MORTGAGE NOTES CALL: "NOTES"
OFFER DETAILS
- Issuer: Wynn Las Vegas, LLC and Wynn Las Vegas Capital Corp.
- Size: $1.32BN
- Issue: First Mortgage Notes
- Format: 144A w/ Reg Rights
- Maturity: 2020 (10-Year)
- Optional Redemption: NC-5
- Ratings: Existing Ba3 / BB+, expect same
- Use of Proceeds: To fund tender offer of any and all 6⅝ First Mortgage Notes due 2014
CALL "NOTES"
- They are at 4x leverage currently and are comfortable operating at that level.
- Rates are still lapping tough comparisons for long term group business that was on the books last year.
- Their goal is to capture market share.
- Beach Club and Surrender cost them $68MM- already seeing a huge return on investment.
- They are going to remodel the rooms at Wynn Las Vegas which they already launched last week. Standard rooms are going to be remodeled over the next 6-9 months, followed by the suites. They are also adding a wine bar and remodeling some of areas on the floor.
- Why the bond offering now?
- Takes a solid balance sheet into an "impenetrable" one .
- Coupled with this deal is a bank amend and extend deal which is going well.
- 2011 / Future room bookings
- Have significantly more convention rooms booked on the bookings for this year and next year. Rate is still challenged. They are starting to see rates tick up slightly on the convention side.
- Convention room nights booked were only 13% in 2009, should be 20%. In the back half of 2010, they will be above 13% and should be a lot better in 2011 as well. This should help them yield up a bit.
- Have significantly more convention rooms booked on the bookings for this year and next year. Rate is still challenged. They are starting to see rates tick up slightly on the convention side.
