Wynn cautions on US-China relations

Wynn Resorts used an 8-K filing on a planned Wynn Macau note sale to express caution on potential negative impacts from the increasingly contentious US-China relationship.

The deteriorating relationship could affect the Chinese economy, Wynn said. Further, even though Wynn Macau is a local company hiring local residents and recognised for its philanthropy, “our business and prospects may be negatively impacted by the fact that we are majority owned by a US company should the US-China relationship further deteriorate.” 

Wynn cited as an example the pending ban by President Trump on US companies conducting “any transaction that is related to WeChat,” the messaging app broadly used in China. The ban, which goes into effect September 20, could “adversely affect our ability to communicate with certain of our customers.”

Wynn’s caution comes several days after the South China Morning Post reported that the WeChat ban could affect the ability of Wynn, Las Vegas Sands and MGM to communicate with their Chinese customers. The purpose of the 8-K was to notify investors that it will sell $600m  in senior unsecured notes due 2028 to repay a term loan.

Source: Fantini’s Gaming Report