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Wynn to Draw Down Part of $850 Million Line Amid Virus Pain

Gillian Tan

(Bloomberg) -- Wynn Resorts Ltd. is planning to draw down a portion of its $850 million revolving credit line as the casino operator grapples with the coronavirus pandemic’s impact on its revenues, according to people with knowledge of the matter.

The company is seeking to shore up its balance sheet as broader market uncertainty grows, said the people, who asked not to be identified because the matter is private. A Wynn spokesman declined to comment. Affiliates of Deutsche Bank AG and Goldman Sachs Group Inc. are among Wynn’s revolving credit facility lenders.

The company, founded by casino mogul Steve Wynn, has operations in Macau, where gross gaming revenue plunged as the world’s biggest gambling hub closed for 15 days to try to contain the spread of the coronavirus. Las Vegas-based Wynn’s shares have tumbled around 38% in the past month, exceeding the S&P 500 Index’s roughly 18% decline.

Wynn Resorts isn’t alone, with other businesses hurt by the virus also bolstering their liquidity. Hilton Worldwide Holdings Inc. is planning to draw a portion of a $1.75 billion loan, and Boeing Co. is aiming to draw down the full amount of a $13.8 billion loan as early as Friday, said people with knowledge of each company’s plans.

Businesses whose core operations are affected by the virus are taking quick steps to improved their cash positions as market volatility raises concerns about a potential liquidity crunch. The coronavirus outbreak is now a pandemic, the World Health Organization declared on Wednesday, with worldwide cases topping 120,000 and deaths exceeding 4,300.

To contact the reporter on this story: Gillian Tan in New York at gtan129@bloomberg.net

To contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, Daniel Taub, Alan Goldstein

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