DOW JONES NEWSWIRES
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.
-By Lauren Pollock, Dow Jones Newswires; 201-938-5964;
lauren.pollock@dowjones.com