Wynn Resorts has announced that it has entered into a commitment letter with Deutsche Bank for a 364-day term loan facility for up to US$800 million that it plans to use to help repay the promissory note issued to Aruze USA.
The term loan follows last week’s settlement agreement between Wynn Resorts, Aruze USA and the latter’s parent company Universal Entertainment Corporation that will see Wynn pay a settlement of around US$2.4 billion to end ongoing litigation between the parties.
The settlement is related to the forced redemption by Wynn in 2012 of shares owned by former board member Kazuo Okada and Aruze USA worth almost US$2.8 billion. Wynn claimed at the time that Okada had put Wynn’s gaming license in jeopardy amid allegations he provided improper hospitality at Wynn properties to Philippine gaming officials to the tune of US$110,000.
The combined settlement amount includes the principal amount of the redemption note of US$1,936,442,631.36 that the company previously issued to Aruze and an additional amount of US$463,557,368.64 related to interest on the redemption note.
In its filing announcing the US$800 million term loan facility, Wynn Resorts said “the company intends to use the net proceeds of this committed financing, and cash on hand, to repay the promissory note that the company previously issued to Aruze USA, Inc.”
The settlement agreement, confirmed late last week, provides for all litigation between Wynn, Aruze and Universal to be dismissed and also puts to an end to claims brought by Universal Entertainment and Aruze USA against Wynn Macau.
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