Japan’s Universal Entertainment has announced plans to repurchase Offshore Private Notes totalling a combined US$1.33 billion after receiving payment from Wynn Resorts following last month’s settlement agreement.
Wynn Resorts revealed in early March that it had reached a settlement agreement with Universal and its subsidiary Aruze USA, Inc pay a settlement of almost US$2.5 billion, putting to bed litigation relating 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.
In a Tuesday release, Universal said that it had received the agreed settlement proceeds on 30 March 2018 and that, “in order to lighten interest burden through the debt reduction, the company commenced a process to repurchase the target notes.”
The offer relates to US$600 million in notes issued to buyers on 24 August 2015 and another US$600 million issued on 14 October and 1 December 2016. The outstanding amount including capitalized interest comes to around US$1.33 billion.
Universal said it expects to settle the repurchase proceeds between 11 and 14 May 2018.
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