Commodity Channel Index
|Bid||70.51 x 1800|
|Ask||72.25 x 1800|
|Day's Range||67.82 - 76.87|
|52 Week Range||35.84 - 153.41|
|Beta (5Y Monthly)||2.38|
|PE Ratio (TTM)||61.43|
|Earnings Date||May 06, 2020 - May 10, 2020|
|Forward Dividend & Yield||4.00 (5.66%)|
|Ex-Dividend Date||Feb 24, 2020|
|1y Target Est||119.88|
U.S. casino operator Wynn Resorts Ltd and automated teller machines maker NCR Corp jointly raised $1 billion on Tuesday, in the first unsecured junk-rated bond offerings since the market was roiled by the coronavirus outbreak at the start of March. The offerings indicate investor appetite for risk is gradually returning in the market for new corporate debt rated below investment grade. The so-called high-yield market has been supported by the Federal Reserve's pledge to backstop the investment-grade market, according to Bill Zox, chief investment officer of fixed income at Diamond Hill Capital Management.
Wynn Resorts, Limited ("Wynn Resorts") (NASDAQ: WYNN) announced today the pricing by Wynn Resorts Finance, LLC ("Wynn Resorts Finance") and its subsidiary Wynn Resorts Capital Corp. ("Wynn Resorts Capital" and, together with Wynn Resorts Finance, the "Issuers"), each an indirect wholly-owned subsidiary of Wynn Resorts, of $600 million aggregate principal amount of 7.75% Senior Notes due 2025 (the "Notes") in a private offering. The aggregate principal amount of Notes to be issued in the offering was increased to $600 million from the previously announced $350 million.
Moody's Investors Service ("Moody's") assigned a B1 rating to Wynn Resorts Finance, LLC's ("Wynn" or "WRF") proposed $350 million senior unsecured notes due 2025. Moody's additionally confirmed the existing ratings of WRF, including the company's Ba3 Corporate Family Rating, Ba3-PD Probability of Default Rating, Ba1 rated senior secured revolver and term loan, and B1 rated senior unsecured notes.
(Bloomberg Opinion) -- Backed into a corner by the coronavirus pandemic, Texas billionaire Tilman Fertitta is rolling the dice in the leveraged-loan market.Fertitta’s empire includes Golden Nugget casinos and restaurants under the Landry’s Inc. umbrella like Bubba Gump Shrimp Co., Morton’s The Steakhouse and Rainforest Cafe. Needless to say, the economic shutdown across America has wreaked havoc on all of those businesses. In a gambit to stockpile extra cash, Landry’s this week is dangling an unprecedented all-in yield of at least 16% to entice investors to buy into a new $250 million loan. It would be the first successful leveraged-loan deal in almost a month, assuming it draws enough commitments on Thursday.It already looks as if the offering arranged by Jefferies Financial Group Inc. will make it past the finish line. Bloomberg News’s Jeannine Amodeo and Davide Scigliuzzo reported Tuesday that order books are already double the size of the proposed loan. That checks out: As I noted last week when Carnival Corp. initially floated bonds yielding close to 13%, bankers involved in these sales have little reason to propose an interest rate that won’t clear the market. Indeed, despite being in a line of business directly harmed by the spreading coronavirus and in desperate need of cash, Carnival priced its bonds 100 basis points lower than the initial level.The Landry’s deal appears to be benefiting from a combination of the highest spread ever on a first-lien loan not tied to bankruptcy and renewed risk appetite broadly. For as risky as Carnival might seem, it at least technically had investment-grade ratings, and its bonds had the unusual benefit of being secured by a first-priority claim on its assets. By contrast, Moody’s Investors Service cut Golden Nugget’s “corporate family rating” on March 24 to B3 from B2, six steps below investment grade. That seems warranted given the company’s struggles. Here’s Bloomberg’s Scigliuzzo and Amodeo on how Landry’s has fared so far during the coronavirus outbreak: The pandemic has brought the travel and leisure industry to a near standstill, leaving Fertitta’s businesses shuttered and burning cash while tens of thousands of his employees have been furloughed.The company has already drawn $300 million of existing credit lines in full and Fertitta is injecting $50 million of his own cash into the business, said one of the people, who asked not to be named because the details are confidential....Fertitta sees the new loan as an expensive insurance policy in the event that none of these businesses can reopen before the end of the year, the same person said.In other words, this leveraged loan is painful, but necessary, for a company that’s directly in the crosshairs of this virus-induced economic slowdown.It won’t be the last such business to try to wade into the riskiest parts of the debt markets looking for financing. Following in Carnival’s footsteps, Wynn Resorts Ltd., which had drawn down almost all of its $850 million revolving credit line, plans to issue $350 million of junk bonds, in what would be the first “unsecured” deal since the high-yield market sprung back to life last week. Viking Cruises is also considering a new $500 million junk bond while its ships are docked.For both investors and borrowers alike, the most crucial question might be whether the rift persists between high-yield debt and leveraged loans. Junk bond funds experienced a record inflow of $7.09 billion for the week ended April 1, according to Refinitiv Lipper data, indicating that the widest yield spreads since the last recession were enough to lure buyers. By contrast, loan funds continue to face withdrawals, with investors pulling another $528 million during the same period. Aside from a few weeks here and there, loan funds have been hemorrhaging cash nonstop since late 2018, when risk assets tumbled and forced the Federal Reserve to stop raising interest rates.Given that backdrop, some investors are skeptical that the Landry’s offering indicates the leveraged-loan market is on the brink of a comeback. A $690 million deal for Mallinckrodt was scrapped last month after attempting to launch, at the time marking the 18th loan deal to be pulled or postponed in 2020. Leveraged loans are trading at about 83 cents on the dollar, based on the S&P/LSTA Leveraged Loan Index. That’s up from as little as 76 cents but still a ways away from the 97 cents at the start of the year.An unidentified syndication manager told Reuters flat out that it “will not be a harbinger of the loan market reopening. With secondary levels still, on average, in the mid-80s, accounts will likely continue to focus their attention on buying names that they know at historically attractive levels.”For Fertitta, whose net worth dropped by about a third at one point a couple of weeks ago, having his deal slip through the cracks at any price would be a win. He shares that sentiment with the leveraged-loan market as a whole. “We are trying to survive,” he told Bloomberg’s Scigliuzzo. “I have enough liquidity to ride this out. I can’t go forever but I can go for a few months.”This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The high-yield market’s duration, or sensitivity to interest rates, doesn’t normally increase when the economy is slowing. At least so far, this downturn seems different.
Wynn Resorts, Limited (NASDAQ: WYNN) ("Wynn Resorts") announced today that Wynn Resorts Finance, LLC ("Wynn Resorts Finance") and its subsidiary Wynn Resorts Capital Corp. ("Wynn Resorts Capital" and, together with Wynn Resorts Finance, the "Issuers"), each an indirect wholly-owned subsidiary of Wynn Resorts, are offering $350 million aggregate principal amount of Senior Notes due 2025 (the "Notes") in a private offering.
The coronavirus crisis is hurting the gaming industry. Gaming revenues from the world's largest gambling hub, Macau fell for the sixth consecutive month.
From guaranteeing hours to full pay replacement, companies are stepping up to help workers impacted by the coronavirus shutdown.
The vast, glitzy gaming halls of Macau are open, but thousands of baccarat tables are empty. In Las Vegas, the casinos have been forced to close in order to prevent the spread of the disease. The same has happened in Australia, South Korea, the Philippines and Cambodia.
Wynn Resorts (Nasdaq: WYNN), the world's leading resort company based in Las Vegas, Nevada, announced today that the Company will extend paying all salaried, hourly and part-time employees through May 15, for a total of 60 days of payroll continuance. The Company decided to take this action as part of its shared responsibility for the health and safety of its employees, their families and the Las Vegas and Greater Boston communities during this pandemic.
The COVID-19 pandemic has been rather disruptive for many companies operating in the hospitality, travel and tourism sectors, including casino operators like Wynn Resorts (NASDAQ:WYNN). On March 18, WYNN stock hit a 52-week low of $35.84. Now the price is hovering around $57.Source: Wangkun Jia / Shutterstock.com Has Wynn stock seen the bottom in March? There are no easy answers to this question. Although it may look like the price cannot get much lower than this, our economy is going through an uncertain period right now."The harder question is will investors increase their investments in this present uncertain economic environment due primarily to the coronavirus pandemic. Investment changes are more volatile than changes in the growth of an economy (changes in GDP)," said Dr. Albert Williams, professor of finance and economics at the H. Wayne Huizenga College of Business and Entrepreneurship Nova Southeastern University.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"In summary, increased consumer spending and investments in the near future is not clear," he continued. "People are all very concerned with this major pandemic and hence only necessary spending will take place. This will impact luxury expenses, including vacations." * 30 Stocks on a Deathwatch So let's take a closer look at why investors may still want to exercise caution before investing in casino shares in April. WYNN Stock and the PandemicThe group owns and operates a portfolio of casinos, including Wynn Las Vegas, Encore Boston Harbor, Wynn Macau, and Wynn Palace, Cotai.In order to get a better appreciation of how Wynn's operations in the U.S. may be affected, let's take a look at what happened in their overseas operations first.Earlier in February, Macau authorities had closed all casinos for several weeks. Macau is currently the only jurisdiction where it is legal to gamble in China. During the closure in February "gross gambling revenues fell nearly 90%."Although Macau casinos are now open, business has not yet picked up. There are still various travel restrictions. And customers are likely to avoid crowded areas for some time to come.Wynn Macau which is traded on the Hong Kong Stock Exchange has recently released its annual report for FY 2019. Management said "the Coronavirus outbreak has had and will have an adverse effect on our results of operations. Given the uncertainty … we cannot reasonably estimate the impact on our future results of operations, cash flows, or financial condition."The group also highlighted that during the closure, it was losing more than $2 million a day.Although various reports indicate that the outbreak might have already peaked in China, at this point coronavirus fears are still quite high in the U.S.Casinos are crowded venues. To slow the spread of coronavirus, Wynn management also announced closures stateside.On March 14, "[I]n consultation with the Massachusetts Gaming Commission, Encore Boston Harbor … announced that it will be closed to the public for two weeks."Then the next day the group "decided to temporarily close Wynn Las Vegas and Encore as part of its continuing effort to reduce the spread of COVID-19."It also promised to pay employees during the crisis.And finally last week, CEO Matt Maddox announced that company executives and board members would take stock in place of salary through 2020. Will Wynn Resorts Ask for Government Help?Understandably the pandemic is not only affecting citizens' wellbeing but also hurting global economies. On March 27, President Trump signed the legislation, called the CARES Act, that will provide over $2 trillion in stimulus to the U.S. economy.Earlier in March, gaming industry had joined airlines and various other groups in asking for government financial help. As the details of the bill have become public, it is clear that businesses that receive aid will not be able to pay dividends or buy back their own shares.Las Vegas Sands Corp. (NYSE:LVS), another casino developer and operator, has indicated that it will not apply for government assistance. However, Wynn Resorts has not yet made a public comment.It may still be too soon to say how most casino operators will deal with the given uncertainty in the coming months. If a global recession is already here, then the worst may not necessarily yet be behind for Wynn stock.If these businesses decide to apply for government help after all, then they'd also need to stop their dividend payments as well as share buybacks.Wynn stock's current dividend yield is about 5%, a highly attractive amount to collect under normal circumstances. But management may have to decrease or fully cancel the dividend during the year.In such a case, the beaten-down WYNN shares may not be able to deliver robust returns in 2020. However, on a more optimistic note, J.P. Morgan analyst Joe Greff believes WYNN stock is undervalued. What To Expect From Q1 EarningsWynn stock is expected to release Q1 earnings in early May.When it reported Q4 and year end 2019 results in February, investors were not impressed. Both revenue and earnings missed estimates.Revenue came at $1.65 billion, a decline of 2.0%, or $34.1 million, from $1.69 billion for the fourth quarter of 2018. Management blamed the decrease on the poor performance by Wynn Palace, Wynn Macau and Las Vegas operations.The group also announced an adjusted loss of 62 cents per share. A year ago in Q4, it had reported adjusted earnings per share of 95 cents. The gaming operator said that the bottom line was especially hurt by operating loss at Encore Boston Harbor as well as declines in operating income in Macau and Las Vegas operations.In several weeks, expected Q1 numbers will no doubt show that Wynn's business is being negatively affected by these difficult times. However, it's not yet quite possible to know the extent of the damage on company earnings.Therefore, if you're not yet a shareholder, you may want to wait before committing any capital into WYNN stock.It may be several quarters before Wynn management builds the business back up. In the meantime, unfortunately for current investors, the share price could come under further pressure. Investor Takeaway on Wynn StockIn general, investors regard casino shares as robust businesses to own. After all, the house always wins over the long term, however, the health and economic effects of the novel coronavirus seem to be beating the house at this point.Therefore, I still find it too risky and early to own shares of casino operators, such as WYNN stock, in a long-term portfolio. But if you've some spare risk capital, then you may consider taking a gamble on these stocks.Things for the average citizen and the economy will eventually improve later in the year. Yet I believe there might be better ways to play a potential rebound in our economy.Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation. As of this writing, she did not hold a position in any of the aforementioned securities. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post Long-Term Investors Should Stay Away From WYNN Stock appeared first on InvestorPlace.
Officials at the Encore Boston Harbor casino are donating scores of masks and toilet paper rolls, efforts aimed at helping the state and a local hospital weather the COVID-19 pandemic.
Macau casinos resume operations after coronavirus-led shutdown. Macau gross revenues in March likely to be down sharply following a steep decrease in February.
Wynn Resorts (Nasdaq: WYNN), the world's leading resort company based in Las Vegas, Nevada, is donating more than $2.5 million worth of goods this week to local medical facilities and nonprofits.
The COVID-19 coronavirus is making its way across the world. The outbreak began at the end of 2019 in Wuhan, China; it has killed roughly 2,500 people, infected more than 83,000 people overall and spread to nearly 50 countries, including the U.S., since then.The coronavirus has now passed the 2002-03 SARS and 2015 MERS outbreaks in scale, and that has triggered heavy selling: Stock indices around the world, including here at home, have been sent into correction territory. Numerous stock picks are already in bear markets.It's no small worry. The SARS outbreak tallied 774 deaths across more than 8,000 cases over a six-month period, yet helped knock China's GDP down from 11.1% in the first quarter of 2003 to 9.1% in the second quarter. The coronavirus's ultimate potential to disrupt the global economy is far worse.This health issue is weighing on most stocks, but it's cutting particularly deep into a few specific industries where the financial strain is already being felt. If there's any silver lining, it's that, like with SARS, this could end up being an opportunity to buy otherwise high-quality stocks at a discount for a potential snap-back.Here, we look at 13 stock picks that are being hammered by the coronavirus outbreak. These stocks might be best avoided until a clearer picture of the coronavirus's eventual fallout develops. But they eventually might be extremely attractive buy-the-dip prospects. SEE ALSO: 11 Best Stocks to Ride Out the Coronavirus Outbreak
Boyd Gaming (BYD) suspends dividend in an effort to preserve cash and maintain ample liquidity in case of a financial crisis due to the coronavirus outbreak.
Top executives at Wynn Resorts, including CEO Matt Maddox, will forego between 33% and 100% of their salaries for the rest of the year.
Wynn Resorts is extending the benefits for all of its North American employees as the coronavirus outbreak continues to spread. Yahoo Finance’s Kristin Myers joins Zack Guzman to discuss.