Casinos & Hotels

Wynn Secondary Offering Should Be A 'How-To-Model' (WYNN, LVS)

Wynn_logoWynn Resorts Limited (NASDAQ: WYNN) accomplished a capital raise which looks to be at a far less of a discount and at much better terms than the recent financing over at Las Vegas Sands Corp. (NYSE: LVS).  Wynn was going to sell 5 million shares, yet it ended up selling 8 million shares of common stock at a $43.50 per share.   

Deutsche Bank Securities and Banc of America were the jointbook-runners for this secondary offering. The company intends to usethe proceeds from the sale of the common stock for general corporatepurposes, including repayment of debt and to enhance financialflexibility for future projects and potential new developments.

Shares closed at $44.76 yesterday, and the price indications are around$43.50 early this morning.  If there is a model for selling stock,others would hope that it could go this smoothly.  The Las Vegas Sands financing came at much more discounted terms, and shares paid a price for it.  There is no denying that after losing about two-thirds of the value that shoul have been expected, but under today’s environment this secondary offering looks like a win… or in this case, a Wynn.

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Jon C. Ogg
November 14, 2008