Galaxy takes ownership of shares as Wynn Resorts pays Universal settlement agreement

Galaxy takes ownership of shares as Wynn Resorts pays Universal settlement agreement

first_img JW Marriott at Galaxy Macau named venue and Galaxy Entertainment Group named Venue Sponsor for 2019 Asian Gaming Power 50 Black Tie Gala Dinner Wynn Resorts has announced the completion of its registered public offering of 5.3 million shares to Galaxy Entertainment Group (GEG), with the Macau casino operator officially taking control of a 4.9% stake in the global gaming giant.In an announcement released early Wednesday morning local time, Wynn also revealed that it has repaid in full the US$2 billion settlement agreement with Japan’s Universal Entertainment Corporation and Aruze USA, Inc as of 30 March 2018. Wynn Resorts shares favored over Wynn Macau: analysts Wynn Resorts to undergo internal restructure as part of refinancing plan Load More RelatedPosts The company said it had used net proceeds from a US$800 million Bridge Facility loan, cash on hand and US$250 million of US credit facilities to settle with Universal and Aruze USA.Wynn subsequently used US$915.8 million from the sale of shares to GEG to repay the Bridge Facility.Wynn Resorts revealed in early March that it had reached a settlement agreement with Universal and its subsidiary Aruze USA, Inc to pay a settlement of almost US$2.5 billion, comprising US$2 billion in promissory notes and around US$464 million in interest. The agreement related to the forced redemption by Wynn in 2012 of shares owned by former board member Kazuo Okada and Aruze USA worth almost US$2.8 billion. Wynn claimed at the time that Okada had put Wynn’s gaming license in jeopardy amid allegations he provided improper hospitality at Wynn properties to Philippine gaming officials to the tune of US$110,000.Last month, GEG emerged as a shock investor in Wynn Resorts, announcing that it had agreed to purchase 5.3 million primary Wynn Resorts shares for a total of US$927.5 million. It was revealed at the same time that Wynn Resorts founder Steve Wynn had agreed to see his entire remaining stake in the company to two current long-term institutional investors.Universal using funds to reduce debtHaving received its own proceeds from the settlement agreement reached with Wynn Resorts, Japan’s Universal Entertainment has announced plans to repurchase Offshore Private Notes totaling a combined US$1.33 billion.In a Tuesday release, Universal said that it had received the agreed settlement proceeds on 30 March 2018 and that “in order to lighten interest burden through the debt reduction, the company commenced a process to repurchase the target notes.”The offer relates to US$600 million in notes issued to buyers on 24 August 2015 and another US$600 million issued on 14 October and 1 December 2016. The outstanding amount including capitalized interest comes to around US$1.33 billion.Universal said it expects to settle the repurchase proceeds between 11 and 14 May 2018.last_img

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