Friday, May 7, 2004 | 10:42 a.m.
Stock offering expected to raise $268.1 million
Wynn Resorts Ltd. of Las Vegas will attempt to raise $268.1 million to help fund construction of a casino in Macau and for other purposes with the offering of 7 million shares of common stock, the company announced today.
The company has granted underwriters Deutsche Bank Securities Inc., J.P. Morgan Securities Inc., Banc of America Securities LLC and Bear Stearns & Co. Inc. the authority to purchase up to an additional 1 million shares to cover any overallotments. The sale is expected to close Wednesday.
In addition to using proceeds of the offering to build the company's first casino report in the Chinese city of Macau, the company said it plans to retire some debt in two Wynn subsidiary companies. The company also said the funds would be held for general corporate purchases, including the possible financing of future acquisitions.
Wynn Resorts stock was trading at $38.38 a share in early trading this morning, down 4.8 percent from Thursday's closing price.
LVCVA considers retirement grant for chief executive
The Las Vegas Convention and Visitors Authority's compensation committee is expected to meet Thursday to consider granting retirement payments totaling $79,977 to the agency's outgoing president and chief executive, Manny Cortez.
The payments amount to nine months' worth of contributions to Cortez' retirement plan and are intended to "round up" his service as a state government employee to 36 years, said Mark Olson, vice president of human resources for the convention and visitors authority.
The consideration "is in recognition of his long, dedicated and faithful service," Olson said. Cortez has been instrumental in making Las Vegas a top tourist destination, he added. Such retirement credit grants aren't unusual to recognize longtime employees, he said.
Cortez, who began his service on the agency's board of directors in 1983 and has been president since 1991, this week disclosed his plan to retire.
Forum Shops owner's profit declines on litigation
INDIANAPOLIS -- Simon Property Group Inc., the world's largest owner of shopping malls including the Forum Shops at Caesars, Wednesday said first-quarter earnings fell 21 percent because of a $13.5 million loss related to litigation over ownership of the Mall of America in Bloomington, Minn.
Net income dropped to $56.2 million, or 24 cents a share, from $70.8 million, or 29 cents, a year earlier, the company said in a statement. Revenue at the Indianapolis-based real estate investment trust rose 9.2 percent to $584.3 million.
Luxury hotel operator swings to profit
TORONTO -- Four Seasons Hotels Inc., the world's biggest manager of luxury hotels, had a first-quarter profit of C$11.5 million ($8 million), helped by an increase in business and leisure travelers and a gain from currency exchanges.
Four Seasons on Thursday reported net income of 31 Canadian cents a share, compared with a loss of C$9.3 million ($7 million), or 27 cents, a year earlier. Revenue rose 7 percent to C$73.7 million ($54 million), the Toronto-based company said in a statement.
Chief Executive Isadore Sharp raised room rates at the company's New York properties as business travel gained after three years of declines.
Four Seasons has a hotel on the Las Vegas Strip at the Mandalay Bay resort.
Four Seasons and rivals including Starwood Hotels & Resorts Worldwide Inc. benefited as demand for rooms at luxury hotels outpaced demand for cheaper lodging.
"It's only the beginning," said Will Marks, an analyst with JMP Securities in San Francisco, who doesn't own any of the shares. "The gains should be really strong the first half of the year" compared with a year ago, when the Iraq war depressed bookings.
The company's average daily rate rose 6.3 percent to $314 a night, while occupancy increased 4.5 percentage points to 64.9 percent.
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