Wynn Eyes Stock Buy; Cuts IPO Price Range

LAS VEGAS— Steve Wynns Wynn Resorts Ltd. lowered the price range of its initial public offering and said Wynn himself would buy at least five million shares of the IPO, according to an amended prospectus filed Oct. 24. According to a Reuters report, the IPO price range was cut to $15-$17 each and the amount of shares offered raised to 28.1 million. The expected price cut came after the firm said earlier in the week it would sell 23.7 million shares for $18 to $20 each, said the report. The company planned to offer 12 million shares directly to certain purchasers, including Wynn and Aruze USA, owned by Wynns Japanese business partner, Kazuo Okada, another principal stockholder of Wynn Resorts. Both Wynn and Aruze have “expressed interest” in purchasing five million shares each at the public offering price, the firm said in the Securities and Exchange Commission filing, the report indicated. Investors have been encouraged by Wynns reputation for turning casinos like Bellagio and The Mirage into gold, but have also been concerned that his planned mega-casino Le Reve would not begin making revenue for three more years, noted Reuters But the altered terms of sale and Wynns new stake should help attract more interest in the sale, investors have said. The IPO is one segment of plans to raise $2.4 billion to build Le Reve, the 2,700-room luxury Las Vegas resort that has plans to include a Ferrari and Masserati dealership and the only golf course on the Strip. Beyond buying shares himself, Wynn could try to sell more debt or expand existing credit lines. In the amended prospectus filed Oct. 24. Wynn Resorts said it planned to sell $365 million of debt and borrow more than $1 billion through different credit lines, the report said. The firm had previously said it would borrow $340 million. The sale, which failed to price on Oct. 22, is hoped to be completed Oct. 24, according to investors, the report said. Investment banks managing the sale include Deutsche Bank AGs Deutsche Banc Securities, Bear Stearns Cos. and Bank of Americas Banc of America Securities. SOURCE: Reuters