Fitch Ratings has assigned a ‘BBB-/RR1’ rating to Wynn Resorts (Macau) S.A.’s (WRM) $3.05 billion senior secured credit facility. WRM’s current Issuer Default Rating (IDR) is ‘BB’, and its Rating Outlook is Stable.

WRM’s IDR is linked to the IDRs of the ultimate parent company Wynn Resorts (Wynn) and other rated subsidiaries including Wynn Macau, the Hong Kong listed parent of WRM.

The new credit facility is made up of a $2.3 billion term loan and a $750 million revolver, representing an increase of $550 million from the existing facility. The credit facility also includes a $1 billion accordion option. The maturity of the revolver has been extended to September 2020 from July 2017 and the maturity of the term loan to September 2021 from July 2018.

The term loan will amortize at a rate of 2.5% to 7.33% per quarter with 50% of the loan due at maturity, which is about nine months before Wynn Resorts (Macau)’s gaming concession expiration in Macau (June 2022). The credit facility will be secured by the assets of, and equity interest in, WRM including the Wynn Palace subsidiary, Palo Real Estate Company Limited.

The proceeds from the credit facility will be used to finance the development of WRM’s $4.1 billion Wynn Palace, due to open March 2016, refinance the existing facility ($1.5 billion outstanding as of June 30, 2015), and provide additional liquidity to the consolidated Macau operations. The draw on the term loan increases WRM’s debt by about $800 million. Pro forma gross leverage increases to 2.8x from 1.9x through the WRM credit facility and 4.5x from 3.5x through the unsecured notes at Wynn Macau Ltd (WRM does not guarantee the notes).

The debt increase in Macau is in line with Fitch’s prior forecasts, which assumed the Wynn Macau subsidiaries raising a total of $1.4 billion of debt in 2015 and no further debt raises in 2016. Fitch believes Wynn Palace is now fully funded, the need to draw on the Macau revolver will be limited and seeking commitments for the accordion will not be necessary to finish Wynn Palace.