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Wynn Resorts Raises Financing For Gambling Resort in Macau

HONG KONG -- Wynn Resorts Ltd., controlled by U.S. casino operator Steve Wynn, has raised a US$744 million loan to finance the construction and expansion of its gambling resort in Asia's gambling capital of Macau.

Wynn Resorts (Macau) SA, a unit of the U.S. parent, tapped a US$729 million equivalent term loan due 2011 and a HK$117 million, or about US$15 million, revolving credit facility due 2007, the company said. It is also taking out a separate HK$156 million equivalent senior secured loan with Banco Nacional Ultramarino SA, a Macau-based bank.

"This is the largest international bank financing of its type completed to date in Macau," said the loan's joint global coordinators, Deutsche Bank AG, Société Générale SA and Bank of America Corp. The loan will be used to help finance the US$1.1 billion Wynn Macau casino resort, which started construction last year.

U.S. casino operators are spending heavily to grab a share of Macau's gaming industry after authorities offered casino licenses to new players three years ago, ending a decades-long monopoly held by local casino tycoon Stanley Ho.

No pricing details were given, but a person familiar with the deal said both loans were priced at three percentage points above the London interbank offered rate. Once the resort opens, loan costs will decline as the credit quality of Wynn Resorts (Macau) improves on revenue inflows from the resort. Wynn Macau is expected to open in September 2006, with additional facilities opening in the first half of 2007.

About 28 banks, including Chinese banks, participated in the loan deal.

Separately, Australian construction group Leighton Holdings Ltd. said yesterday it had won a 200-million-Australian-dollar, or about US$154 million, contract to expand a new hotel and casino complex it is building in Macau for Wynn Resorts Ltd.

In a joint venture with China State Construction Engineering, Leighton Asia (Northern) will design and construct a second building to house two restaurants, an entertainment facility and additional gaming and meeting space, which will integrate with the original phase of the five-star resort.

posted by Henry @ 10:19 PM