Bonds backing Wynn Las Vegas were climbing in heavy trading Wednesday, after Steve Wynn announced his decision to step down, “effective immediately,” as chairman and CEO of parent company Wynn Resorts (Nasdaq: WYNN). The company also announced it has appointed current Wynn Resorts president Matt Maddox as its CEO and Boone Wayson as non-executive chairman.
The decision follows more than a week of steady declines of the unsecured notes backing the Las Vegas subsidiary, following a Jan. 26 Wall Street Journal report that “dozens of people” had come forward to recount a decades-long pattern of sexual misconduct by the chief executive. Wynn Resorts’ board of directors promptly formed a special committee to look into the allegations, and Steve Wynn shortly thereafter resigned from his post as finance chairman of the Republican National Committee.
“In the last couple of weeks, I have found myself the focus of an avalanche of negative publicity,” Steve Wynn said in a Wednesday statement. “As I have reflected upon the environment this has created—one in which a rush to judgment takes precedence over everything else, including the facts—I have reached the conclusion I cannot continue to be effective in my current roles.”
Wynn Las Vegas 5.25% notes due 2027 and 5.5% notes due 2025 climbed roughly 3.875 points and 2.125 points, respectively, as the most heavily traded issues in high-yield Wednesday morning, rising to about 100.625 and 102.625, according to MarketAxess.
The 2025 tranche had been trading as high as 105 after the issuer on Jan. 22 detailed better-than-expected earnings for its fourth quarter. Wynn Resorts booked adjusted EBITDA for the quarter of roughly $480.2 million, topping analyst forecasts by about 7.9%, as net revenue of $1.69 billion for the period also beat estimates by roughly 8.3%, based on consensus data provided by S&P Global Market Intelligence.
Wynn Resorts, which is based in Las Vegas, develops, owns, and operates destination casino resorts in the U.S. and Macau. — James Passeri
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