Genting Malaysia outlines restructuring plan for Empire Resorts
Proposal involves US$525m asset sale, land acquisition and bond redemption.
Key points:
– Empire Resorts to sell non-gaming assets for US$525m
– Proceeds to fund land acquisition, bond redemption and management agreement
– Proposal aims to make Empire debt-free and strengthen long-term asset base
Genting Malaysia Berhad has announced a proposal to restructure its wholly owned subsidiary Empire Resorts, with a package of transactions designed to enhance capital strength and financial stability.
The plan includes the sale of non-gaming assets such as Resorts World Catskills’ 332-room hotel, Alder Hotel, the Monster Golf Course, RWC Epicenter and several restaurants to Sullivan County Resort Facilities Local Development Corporation (SCRFLDC) for US$525m. Empire will then lease back the land until 2066 and manage the facilities under a 20-year agreement, renewable for two additional five-year periods.
Proceeds from the disposal will partly finance the purchase of 1,554.6 acres of land from EPR Properties for US$201.3m. This includes 420 acres already hosting Resorts World Catskills facilities and 1,134.6 acres of vacant land with future development potential. The transaction allows Empire to secure ownership of land previously subject to lease arrangements.
Additionally, Empire intends to redeem in full its US$300m senior unsecured notes due in 2026, effectively removing debt obligations from its balance sheet. The elimination of interest payments, combined with the end of lease expenses to EPR, is expected to improve Empire’s cost structure and overall financial position.
Good to know: The proposal will also generate around US$10m in surplus cash for Empire’s working capital
The proposal is aimed at reinforcing Genting Malaysia’s long-term commitment to the New York State gaming market and strengthening competitiveness in the broader northeastern United States.
Empire and SCRFLDC are finalising the agreements, with further details to follow once the transactions are confirmed.
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