Wynn Resorts (NASDAQ: WYNN) announced on Tuesday that it has issued $800 million in corporate debt through a private offering to redeem bonds due in 2025 and to cover a $130.13 million penalty recently imposed by the Department of Justice (DOJ). 

The recently released senior notes will mature in 2033, carrying an interest rate of 6.25%, and are “backed by all domestic subsidiaries of Wynn Resorts Finance” excluding Wynn Resorts Capital.

"Wynn Las Vegas, LLC will use the amounts to (i) redeem in full Wynn Las Vegas and Wynn Las Vegas Capital Corp.’s 5.500% Senior Notes due 2025 (the “2025 LV Notes”) and (ii) pay fees and expenses related to the redemption and (b) use the remainder of the net proceeds for general corporate purposes, which may include covering all or a portion of the $130 million forfeiture under the non-prosecution agreement described in our Current Report on Form 8-K filed with the Securities and Exchange Commission on September 6, 2024,” according to a statement issued by the gaming company.

On Friday, Wynn informed investors that it had secured a $130.13 million settlement with the Justice Department — the largest penalty ever imposed on a single domestic casino — “predicated on admissions of criminal misconduct,” as stated by the DOJ. 

Wynn Bond Offering Suggests Prompt Settlement of DOJ Fine 

Although the gaming company hasn't specified when it will settle the $130.13 million debt to the government, indicating that some funds from the bond sale may be allocated for that purpose suggests the casino operator could quickly fulfill that obligation. 

In an inquiry conducted by the DEA, IRS, and the investigative division of the Department of Homeland Security, it was revealed that Wynn Las Vegas breached several anti-money laundering regulations and intentionally permitted certain disreputable Chinese clients to access and gamble at the Strip integrated resort. 

In a case pointed out by the DOJ, Wynn Las Vegas allowed a Chinese customer who “had spent six years in a Chinese prison for engaging in illegal international monetary transactions and breaching other financial regulations” to gamble at the establishment. 

In a nonprosecution agreement (NPA) with the government, Wynn Las Vegas admitted to misconduct and indicated that it has implemented significant steps to enhance its anti-money laundering practices, while informing the government that employees linked to the dubious transactions are no longer with the organization. 

Wynn Bond Sale Has an Additional Objective 

The Wynn bond sale aims to swiftly remove the DOJ liability from its books, making the transaction significant as it also enables the operator to repay bonds maturing next year. 

Wynn collaborates with competitor MGM Resorts International (NYSE: MGM) in recently revealing new debt offerings intended to resolve obligations maturing next year. Prior to those announcements, certain analysts pointed out that such transactions were unnecessary as gaming firms are capable of managing the obligations that are due in 2025. 

In other news that is connected, gaming equipment and lottery behemoth International Game Technology (NYSE: IGT) announced on Tuesday that it is issuing a new euro-denominated bond to repurchase nearly $500 million in senior secured notes that are due in 2025.