Wynn Resorts picks up $700 million in deal with Wynn Las Vegas
Shares of Wynn Resorts Ltd. gained almost 3 percent Wednesday after it had its "buy" rating reaffirmed by Goldman Sachs, and J.P. Morgan reaffirmed its "overweight" rating following the gaming company's announcement that it received $700 million and controlling interest in Wynn Golf LLC and related water rights.
In a Securities and Exchange Commission filing, Wynn Resorts said the distribution by its subsidiary, Wynn Las Vegas, was "related to a release of liens associated with certain of its debts."
The transfer gives Wynn Resorts an additional $700 million "to use as they wish for general corporate purposes or to return to shareholders," according to analysts.
"We view the cash shift as enhancing Wynn's overall financial flexibility, especially with regard to paying out a special dividend at the of this year," J.P. Morgan analyst Joe Greff said. "We believe the size of the special dividend can be greater than recent buy-side expectations of $5 per share."
Wynn Resorts stock gained $2.96, or 2.63 percent, Wednesday to close at $115.69 on heavy volume of 2.42 million shares traded on the Nasdaq Global Select Market. Shares of Wynn Resorts have a 52-week range of a low of $90.11 to a high of $156.49.
Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.
