EFTA01385369.pdf

3 January 2018 HY Corporate Credit HY Multi Sector.Media. Cable & Satellite With this report we are reaffirming our Buy rating on the WYNNMAC 4.875% Senior Unsecured Notes due 2024 ($100.3, 4.8% YTW, 264bps STW) and WYNNMAC 5.5% Senior Unsecured Notes due 2027 ($101.1. 5.1% YTW, 273bps STW) given our belief that these notes are trading at attractive levels based on relative value. For 2017, we are projecting Wynn Resorts will generate Adjusted EBITDA of $1.64 billion (+44.5% versus $1.14 billion) on revenues of $6.16 billion (+38.0% versus $4.47 billion). Factoring capital expenditures of $790 million, cash interest of $365 million, cash taxes of $2 million, dividends of $320 million, $15 million towards the purchase of intangibles, share repurchases of $20 million, $20 million towards investments in securities and proceeds from dispositions of $20 million, we project free cash flow of $132 million in 2017. Using our projected total debt of $9.93 billion and cash interest of $365 million, we estimate Wynn Resorts will end the year with leverage of 6.0x and coverage of 4.5x. Factoring consolidated cash of $2.83 billion, we estimate net leverage at 4.3x. For 2018, we are projecting Wynn Resorts will generate Adjusted EBITDA of $1.82 billion (+10.5% versus $1.64 billion) on revenues of $6.50 billion (+5.5% versus $6.15 billion). Factoring capital expenditures of $1.52 billion, cash interest of $375 million, cash taxes of $2 million, dividends of $315 million. $15 million towards the purchase of intangibles, share repurchases of $20 million. we project total cash burn of $427 million in 2018. Using our projected total debt of $10.14 billion and cash interest of $375 million, we estimate Wynn Resorts will end the year with leverage of 5.6x and coverage of 4.8x. Factoring consolidated cash of $2.58 billion, we estimate net leverage at 4.1x. [Exhibit 8: Wynn Resorts ($ Millions) 2015(A) 2018(A) L1M 2017(E) 2018(E) Cconeallditsd EBITDA $1,071 $1.138 51,535 51,843 $1,815 Less: Capital Expenditures 1,921 1.226 5922 $790 $1.515 Loss: Cash interest 291 265 367 365 375 Less: Cash taxes 3 2 2 2 2 Loss: Purchase of intangibles 4 15 16 15 15 Less: Dividends paid 499 325 332 320 315 Loss: Share Repurchases 12 22 16 20 20 Less: Investments in Securities 6 52 19 20 0 Plus: Dispositions 37 221 237 20 0 Free Cab Flow (S1A271 arta 588 $132 15427) Total Debt $9,213 $10.324 $9.926 98.926 $10.139 Cash 2,195 2.627 2.679 2.827 2.613 Lessee 8.0x 9.1x 8.5x 8.0x 6. Net Leverage 0.5x EU3x 4.7x 4.3x 4.1 Cane* 3.7x 4.3x 4.2x 4.5x 4 <our. (avow Morro Onto,* Sint Downside risks are deterioration of the Macau market, the need for cash at that entity, which may reduce liquidity. Page 94 Deutsche Bank Securities Inc. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0086653 CONFIDENTIAL SDNY_GM_00232837 EFTA01385369