Wynn Secondary Offering Should Be A ‘How-To-Model’ (WYNN, LVS)
November 14, 2008 by Douglas A. McIntyre
Wynn 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.
You can join our open email distribution listto hear about other IPO’s, secondary offerings, private placements,merger, special situations, rumors, Warren Buffett developments, andmore.
Jon C. Ogg
November 14, 2008
Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.