Casino giant Wynn Resorts Ltd. (WYNN) completed amendments to its credit agreements Tuesday, giving it added flexibility to weather the industry downturn.
The move come as the casino industry has been slammed by collapsing Las Vegas property values and a downturn in consumer spending and travel. Several small casino companies have either entered bankruptcy protection or are flirting with it. Others are slashing costs and struggling to cut massive debts incurred for expansions and buyouts.
Under Wynn's amendment, lenders agreed to waive leverage covenants until June 2011 and increase the thresholds after that point. The deal also provides added flexibility for its interest coverage ratios and extends the maturity on about $610 million of the remaining $697 million revolving commitments from August 2011 to July 2013, among other things.
The company has about $1.3 billion in cash and $4.5 billion in long-term debt.
Last week, MGM Mirage (MGM) and partner Dubai World reached a preliminary agreement on a plan to complete City Center, their jointly owned $8.6 billion Las Vegas project, people with knowledge of the talks told The Wall Street Journal.
The project had looked precarious after Dubai World, the investment arm of the Persian Gulf emirate, skipped two construction payments on the project worth $135 million, and sued MGM Mirage over allegations of cost overruns and mismanagement of the project. Some had feared MGM would have to seek bankruptcy protection.
Wynn shares were unchanged at $31.59 in after-hours trading Tuesday.END
No comments:
Post a Comment