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Plans $198 million Expansion |
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LAS VEGAS - May 3, 2004--Wynn Resorts, Limited (NASDAQ: WYNN) unveiled
the first steps of its plan for the expansion of its Wynn Las Vegas resort.
Highlights of these preliminary steps include:
The expansion of the parking facilities and the demolition of the remaining Desert Inn structures will be undertaken by a newly-formed subsidiary of the Company. On May 3, 2004, this subsidiary borrowed approximately $143 million, secured by the 20-acre site on which the Desert Inn buildings currently stand. The site was formerly owned by another Company subsidiary, and was recently released from the collateral securing the Wynn Las Vegas credit facility and its 12% mortgage notes. The newly-formed subsidiary will retain approximately $61 million of the $143 million loan and use such funds to finance the expansion of its parking facilities, demolition of the remaining Desert Inn structures, and payment of interest, fees and expenses related to the financing transactions. The remaining $82 million of loan proceeds will be distributed to Wynn Resorts and used by the Company, along with an additional $55 million in available cash, to fund the $137 million equity contribution to Wynn Las Vegas. Further expansion, including an additional casino, hotel tower and related amenities, remains subject to the design and budgeting processes, as well as additional financing. |
Contact:
Wynn Resorts, Limited Las Vegas Samanta Stewart, 702-770-7555 [email protected] |