Last week, Wynn Resorts, a leading gaming and hospitality operator based in the United States, announced a significant settlement with the US Department of Justice (DOJ). The company's subsidiary, Wynn Las Vegas, has agreed to forfeit a record $130 million to resolve alleged financial offenses.
In conjunction with this development, Wynn has priced $800 million in senior notes due in 2033, carrying a 6.250% interest rate. These notes will be issued by the company's subsidiaries in a private offering, with Wynn hinting that the proceeds may be used to redeem existing 5.500% senior notes due next year, as well as cover related fees.
Wynn has indicated that a portion of the net proceeds will also be allocated for general corporate purposes, potentially including the settlement of the $130 million forfeiture. This forfeiture marks the largest ever imposed on a casino company in the US, stemming from breaches aimed at circumventing conventional financial systems.
Wynn Las Vegas has committed to enhancing its anti-money laundering policies in light of the settlement, which involved accusations of utilizing unlawful methods, including proxy agents gambling on behalf of others. The issuance of these notes reflects Wynn's determination to resolve these issues and move forward.