The Wynn Macau Limited subsidiary of American casino operator Wynn Resorts Limited has reportedly drawn some $50 million from a revolving $74 million credit facility in an attempt to counter the ongoing financial impacts of the coronavirus pandemic.
According to a report from Inside Asian Gaming, the move from the Hong Kong-listed firm was revealed by its giant parent earlier today as part of an announcement that two of its other subordinates would be launching a $600 million private share offering.
Coronavirus consequences:
Inside Asian Gaming reported that Wynn Macau Limited is responsible for the 1,000-room Wynn Macau as well as the even grander Wynn Palace Cotai and was recently damaged as a direct result of February’s 15-day shutdown of casinos in Macau. The firm is also said to be struggling to reenergize its business in the wake of the coronavirus outbreak and the resultant near temporary ban that remains in place for visitors arriving into the former Portuguese enclave from the Chinese mainland.
Subsequent slump:
Las Vegas-headquartered Wynn Resorts Limited reportedly detailed that its Asian enterprise is now expecting to record aggregated first-quarter operating revenues of $912 million to $969 million, which would be a substantial decline from the around $1.64 billion it racked up for the same period in 2019. The Nevada casino operator purportedly explained that Wynn Macau Limited moreover anticipates chalking up adjusted property earnings before interest, tax, depreciation and amortization for the three-month cycle that may have fallen by as much as 88% to a low of $58 million.
Reportedly read a statement from Wynn Resorts Limited…
“During the closure period, we incurred approximately $2.5 million per day of cash operating expenses excluding cash interest expense of approximately $500,000 per day. Until such measures are lifted, we expect to continue to incur such cash costs in excess of the amounts we are earning at our properties.”
Plentiful provision:
However, Wynn reportedly sounded an optimistic note by pronouncing that its Macau subordinate had held approximately $800 million in cash and equivalents at the end of March and was still able to call on about $24 million from its revolving credit facility.