Wynn amends loan, changing covenants, revolver maturity and pricing

By Sara Rosenberg

New York, April 21 - Wynn Las Vegas LLC amended its senior secured credit facility, modifying covenants, extending the maturity on some of the revolver commitments and increasing pricing, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

The amendment waived leverage covenants until June 2011 and increased leverage thresholds thereafter (see table 1).

In addition, flexibility was gained under the interest coverage ratio (see table 2).

Under the revolver, about $610 million of the remaining $697 million commitments were extended to July 2013 from August 2011.

Pricing on revolver 1 is Libor plus 162.5 basis points, pricing on revolver 2 due July 2013 is Libor plus 300 bps and pricing on the term loan B is Libor plus 187.5 bps.

Furthermore, the amendment removed the dollar cap on the equity cure for covenant calculations over the life of the loan.

The amendment was completed on April 17.

Deutsche Bank is the administrative agent on the deal.

Wynn is a Las Vegas-based casino company.

Table 1: Consolidated Leverage Ratio

Quarterly Date Leverage Ratio Post-Initial Phase II Calculation Date

June 30, 2011 6.50:1

Sept. 30, 2011 6.25:1

Dec. 31, 2011 6.00:1

Table 2: Consolidated Interest Coverage Ratio

Quarterly Date Interest Coverage Ratio

Dec. 31, 2007 2.00:1

March 31, 2008 through and including Sept. 30, 2008 1.75:1

Dec. 31, 2008 1.40:1

March 31, 2009 1.35:1

June 30, 2009 through and including March 31, 2011 1.25:1

June 30, 2011 1.75:1

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