Wynn Resorts completes $1.7 billion sale and leaseback transaction of Encore Boston Harbor
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On Thursday, December 1st, Wynn Resorts Limited, a globally recognized developer of high quality hotels and casinos, publicly announced that it has completed the sale of the land and real estate properties of its Everett-based Encore Boston Harbor to Realty Income Corporation for 1.7 billion US dollars in cash, with key regulatory approvals and a cash rate of 5.9%.
Strengthening global liquidity:
The transaction will boost the company’s worlwide liquidity to 4.4 billion US dollars.
Under the terms of the sale agreement, Encore Boston Harbor will continue to be managed by Wynn Resorts through a triple net lease agreement that will give the company the opportunity to pay an initial annual rent of 100 million US dollars over a 30-year term with an option for an additional 30 years.
During the first 10 years of the lease, the resort and casino rent will increase by 1.75% per annum and the greater of 1.75% or CPI (capped at 2.5%) for the last initial lease period.
Holder of 30-year license renewal option:
Wynn Resorts also has a 30-year lease renewal option.
Not long ago Wynn Resorts publicly announced a loss of 142.9 million US dollars in the three months to September 30th, 2022, with record adjusted EBITDA at properties at Wynn Las Vegas and Encore Boston Harbor, balanced by important loses in Macau.
Previous deals:
In June, Wynn Resorts signed an agreement to provide a 500 million US dollars loan to its Macau-based subsidiary, Wynn Macau Limited.
In addition, last month, Encore Boston Harbor signed a preliminary agreement with Caesars Entertainment for Caesars to use the casino’s license to manage online betting in the country.
About:
Wynn Resorts Limited was founded and officially launched in 2002 and it’s based in Las Vegas, Nevada. Its main focus is developing and operating high quality hotels and casinos.
The company is globally recognized with development properties in Macau, Cotai and Everett.
During the Covid-19 pandemic, Wynn was the only gaming operator to remain solely focused on its employees, meaning the company resisted to perform mass layoffs. That resulted with developing and operating another 6 properties in the middle of pandemic (2020).
Encore Boston Harbor is a luxury resort and casino based in Everett, Massachusetts. It was founded and officially launched in 2019.
It provides access to many games such as slot machine games (Baccarat, Blackjack, Roulette), more than 185 table games and poker games of the highest caliber.
Realty Income Corporation is an S&P 500 company and a member of the S&P 500 Dividend Aristocrats® index. Its main focus is investing in people and places to deliver relieble monthly dividends that grow over time.
