Deutsche Bank, Bear Stearns and Bank of America will launch a $1 billion credit backing Wynn Resorts' $2.4 billion development of Le Reve this month. A $750 million revolver will be accompanied by a $250 million delayed-draw term loan, both of which will carry a spread of 4% over LIBOR. Deutsche officials declined to comment, while officials at Bear Stearns and BofA did not return calls by press time.
The fully underwritten loan was said to be a critical factor in the banks also winning considerable ancillary business, including lead roles on an initial public offering and a mortgage securitization, bankers said. Indeed, Dresdner Kleinwort Wasserstein is reported to have been named a co-lead manager on the IPO after agreeing to syndicate $150 million of the loan. The IPO is expected to raise more than $400 million, and the securitization is estimated to be $350 million.
Wynn Resorts will build Le Reve on the site of the former Desert Inn Resort & Casino in Las Vegas. Groundbreaking for Le Reve is scheduled for September, and opening is slated for 2005. A spokesman for Wynn declined to comment until the quiet period for the IPO has expired.