Macau gaming operator Wynn Macau Ltd says its gaming floor turnover has climbed to 47% of 2019 levels, with GGR up to 31% and Adjusted EBITDA back into positive territory during the first two months of Q4.
The company provided a business update overnight while announcing plans to conduct a new offering of additional notes to professional investors. Although no further details on the notes or the amount to be issued were provided, it represents the third such offering by Wynn Macau Ltd in 2020 following a US$750 million offering in June and subsequent US$850 million offering in August, which were consolidated to form a single series.
The company said in a filing that it “intends to use the net proceeds from the proposed offering to facilitate the repayment of a portion of the amounts outstanding under the Wynn Macau Credit Facilities.
“The Board believes that there would be significant benefit to the company in effecting the proposed issuance and using the net proceeds for the intended purpose as it would extend the maturity profile of the Group’s indebtedness and reduce the Group’s secured indebtedness.”
However, it also outlined much improved numbers since the start of October, having previously reported a 93.7% year-on-year decline in revenues in 3Q20 to US$67.1 million and an Adjusted EBITDA loss of US$112.1 million.
Between 1 October and 30 November 2020, Wynn Macau Ltd said its preliminary calculations showed total operating revenues of between US$258 million and US$262 million for the two-month period and Adjusted Property EBITDA in the range of US$13 million to US$15 million.
GGR was also back to 31% of 4Q19 levels with daily average table drop back to 47%. Operating expenses, excluding gaming taxes, were US$2.3 million compared to US$3 million during the fourth quarter of 2019, while hotel occupancy was 54.3% at Wynn Palace and 60.6% at Wynn Macau. Both were near 100% over the same period last year.
Wynn Macau Ltd said it currently has unrestricted cash and cash equivalents of US$2.1 billion at its disposal, including borrowing capacity of US$25.1 million under its Wynn Macau Revolver as of 20 November 2020. The company repaid an identical US$25.1 million amount in November.
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