Wynn Resorts Limited

10/03/2024 | Press release | Distributed by Public on 10/03/2024 14:13

Material Agreement Form 8 K

Item 1.01 Entry into a Material Definitive Agreement.
On October 2, 2024 (the "Effective Date"), Wynn/CA Plaza Property Owner, LLC and Wynn/CA Property Owner, LLC (collectively, the "Borrowers") entered into a third amendment (the "Third Amendment") to their existing term loan agreement (the "Term Loan Agreement," and, as amended by the Third Amendment, the "Extended Term Loan Agreement") with United Overseas Bank Limited, New York Agency, as administrative agent, and the lenders party thereto. The Term Loan Agreement provides for a term loan in an aggregate principal amount of $615.0 million. The Borrowers own approximately 160,000 square feet of retail space at Wynn Las Vegas, and each of the Borrowers is a 50.1%-owned subsidiary of Wynn Resorts, Limited, with the remaining 49.9% equity interest owned by Crown Acquisitions Inc., an unrelated third party.
The Third Amendment amends the Term Loan Agreement to, among other things, (i) extend the scheduled maturity date of the term loan to July 24, 2027; (ii) provide for an interest rate on the term loan equal to One Month Term SOFR (as defined in, and determined in accordance with, the Extended Term Loan Agreement) plus a spread of 215 basis points; and (iii) require that the Borrowers meet a specified maximum loan to value ratio annually (which, if not met, triggers a mandatory excess cash sweep until such ratio has been achieved) as well as certain specified minimum debt yields.
In connection with, and as provided under, the Third Amendment, the Borrowers (a) made a principal prepayment of the term loan in the amount of $15.0 million, and (b) to mitigate interest rate risk, entered into an interest rate swap agreement maturing in February 2027, which effectively caps the variable component of the interest rate on the term loan at 3.385% through such date.
The Extended Term Loan Agreement contains customary representation and warranties, cash sweeps, events of default and such other affirmative and negative covenants for debt facilities of this type, including, among other things, limitations on leasing matters, incurrence of indebtedness, distributions and transactions with affiliates. Borrowings under the Extended Term Loan Agreement are secured by substantially all of the assets of the Borrowers.
The foregoing description of the Third Amendment is qualified in its entirety by reference to the full text of the Third Amendment, which is filed herewith as Exhibit 10.1 and incorporated herein by this reference.