Macau getting Las Vegas-style taste for bond markets

    Published in: Latest IntelligenceMacau’s casino operators, which have traditionally used bank loans to finance the construction of their resorts, are increasingly turning to high-yield debt to fund projects, according to industry experts at a gaming conference in Hong Kong Rival gaming mecca Las Vegas was built on the back of high-yield bonds. A legendary example is casino mogul Steve Wynn who funded his empire — which ranged from the Golden Nugget, The Mirage, Treasure Island and the Bellagio — through these high-yield instruments, before he sold the collection to MGM Grand for more than $6.4 billion in 2002. Sheldon Adelson also used bonds to build The Venetian in Las Vegas.“In the past ten years, the high-yield bond market has lent $85 billion to casinos in Las Vegas to build their properties,” Bryant Edwards, a partner at Latham & Watkins, said at the “A Winning Bet: Gaming Finance in Asia” event.Now...

    Intelligence Articles is a premium content section developed for AGB members only featuring in-depth articles on relevant items of interest across the multiple Asia Pacific Gaming jurisdictions. To continue reading, subscribe now.