UPDATE: Goldman Sachs Maintains Wynn Resorts at Buy on Potential Special Dividend
Goldman Sachs reiterated its Buy rating on Wynn Resorts (NASDAQ: WYNN) following a termination of credit agreement freeing up $700 million in cash flow.
Goldman Sachs commented, "On 9/17, Wynn Las Vegas terminated its Amended and Restated Credit Agreement, dated as of August 15, 2006. The termination of the credit agreement releases the liens securing and the subsidiary guarantees of Wynn Las Vegas' entire Mortgage notes. … The transfer gives Wynn Resorts (WYNN), an additional $700mn to use as they wish for general corporate purposes or to return to share holders. While the company has not stated a direct use of this extra cash, given WYNN's track record and history, we would not be surprised if management returns that cash back to shareholders in the form of a special dividend."
Wynn Resorts closed at $112.73 on Tuesday.
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