Wynn Macau said to start marketing us$ 1.5 billion casino loan

Wynn Macau communications director Katharine Liu declined to comment when contacted by e-mail last week.

Macau is the world’s largest gambling hub by revenue and the only place in China where gambling in casinos is legally allowed. The number of Chinese visitors to Macau rose 22 percent to 16 million last year, helping to increase gambling revenue 42 percent to us$ 33.5 billion, according to Macau’s Gaming Inspection and Coordination Bureau.

Wynn Macau will use proceeds from the loan to finance a new project along the city’s Cotai strip, another person familiar with the matter said on May 22. Deutsche Bank AG and JPMorgan Chase & Co. joined the loan prior to syndication with commitments of us$ 200 million each, the person said last week.

The margin on both portions of the loan starts at 250 basis points more than the London interbank offered rate for the first two quarters, after which it will be based on a leverage ratio grid, the person said. The margin will be 250 basis points for leverage of 4.5 times or more, 225 basis points for 4 to 4.5 times, 200 basis points for 3 to 4 times and 175 basis points for less than 3 times, the person said.

Banks pledging us$ 200 million will be paid an upfront fee of 200 basis points and given the title of global coordinating lead arranger, the person said. Banks committing us$ 150 million get a 150 basis-point fee while those lending us$ 100 million get 100 basis points, the person said. Lenders pledging us$ 50 million will receive a 75 basis-point fee.

There is also a so-called early-bird fee of 12.5 basis points for banks joining before the end of the first week of June, the person said. Banks can fund the facility in either U.S. or Hong Kong dollars.

Wynn Macau has a us$ 1 billion revolving loan due in June, part of a us$ 1.55 billion facility signed in 2007, according to data compiled by Bloomberg. Deutsche Bank and Bank of America were among the lenders, the data show.