Wynn Macau Ltd has announced a shareholder loan agreement that will see its parent company Wynn Resorts Ltd provide a new US$500 million revolving loan facility.
In a Hong Kong Stock Exchange filing on Tuesday, Wynn Macau said the agreement “highlights both Wynn Resorts Ltd and the company’s confidence in the long-term growth potential of Macau and the availability of the facility further bolsters the company’s already strong financial position. Wynn Resorts Ltd will provide the facility to the company in order to support the group’s potential future working capital and other funding needs, if necessary, during the term of the facility.”
The current maturity date of the facility is 24 months after the date of the agreement, to be repaid at an interest rate of 4% per annum on any loan amount withdrawn.
The revolving loan facility comes after Wynn Macau revealed last week that 90% of the company’s management staff had agreed to a reduction in salary on the basis that they would be offered shares of equal value to the salary reduction instead, helping reduce cash payroll.
It has been estimated by analysts that Macau’s concessionaires are currently losing a combined US$800 million per quarter due to ongoing COVID-19-related border restrictions, with Wynn Macau reporting a US$98.3 million loss in the three months to 31 March 2022.
Wynn Resorts holds a 72% stake in its Macau subsidiary.