Empire Resorts, Inc. and Montreign Operating Company, LLC Announce the Closing of $500 Million First Lien Credit Facilities
January 24 2017 - 2:33PM
Business Wire
Montreign Operating Company, LLC (“Montreign”), a wholly-owned
indirect subsidiary of Empire Resorts, Inc. (NASDAQ-GM:NYNY)
(“Empire” and, together with its subsidiaries, the “Company”) today
(the “Closing Date”) announced the successful closing of its senior
secured first lien term loan facility and senior secured revolving
credit facility. The financing provides an aggregate of $485
million senior secured first lien term loans, consisting of $70
million of Term A loan commitments and $415 million of Term B loan
commitments, and a $15 million senior secured revolving credit
facility. The Term A term loan and the revolving credit facility
have a maturity date of January 24, 2022 and the Term B term loan
has a maturity date of January 24, 2023.
The first lien term loans and the revolving credit facility are
both floating rate facilities. Interest will accrue on outstanding
borrowings under the Term A loan at a rate equal to LIBOR plus 5.0%
per annum, or an alternate base rate plus 4.00% per annum. Interest
will accrue on outstanding borrowings under the Term B loan at a
rate equal to LIBOR (with a LIBOR floor of 1%) plus 8.25% per
annum, or an alternate base rate plus 7.25% per annum. Interest
will accrue on outstanding borrowings under the revolving credit
facility at a rate equal to LIBOR plus 5.0% per annum, or an
alternate base rate plus 4.0% per annum. Montreign will also pay a
commitment fee, in an amount of 2.5% per annum from the Closing
Date through March 24, 2018 and 5.0% per annum thereafter, to each
Term A loan lender on the undrawn amount of each Term A lender’s
Term A loan commitment.
The Term A loan may be borrowed during the period from the
Closing Date to July 24, 2018, subject to certain conditions. The
Term B loan was borrowed in full on the Closing Date. The proceeds
of the Term B loan were used to pay fees and expenses related to
the financing and fund various lender-controlled accounts. The
proceeds in these lender-controlled accounts, which accounts will
include proceeds of the Term A loan upon borrowing, will be used by
Montreign and its subsidiaries to fund the costs relating to the
development and construction of Montreign Resort Casino, as well as
the entertainment village and the golf course, to be located at the
Adelaar destination resort in Sullivan County, New York. The
proceeds of the revolving credit facility may be used for working
capital needs, capital expenditures and other general corporate
purposes.
The borrower under the credit facilities is Montreign. The
obligations of Montreign are guaranteed by Montreign’s subsidiaries
and are secured by security interests in substantially all of the
assets of the Montreign and its subsidiaries, as well as by a
pledge of the membership interests in Montreign. In connection with
the senior secured first lien term loans, Empire provided a
completion guaranty capped at $30 million on the completion of
construction of Montreign Resort Casino and the entertainment
village.
Cautionary Statement Regarding Forward Looking
Information
Statements in this press release that are not historical facts
are “forward-looking statements” that may involve material risks
and uncertainties. The Company wishes to caution readers not to
place undue reliance on such forward-looking statements, which
statements are made pursuant to the Private Securities Litigation
Reform Act of 1995, and as such, speak only as of the date made.
For a full discussion of risks and uncertainties, which could cause
actual results to differ from those contained in the
forward-looking statements, please see Empire’s filings with the
U.S. Securities and Exchange Commission. We undertake no obligation
to update publicly any of these forward-looking statements to
reflect actual results, new information or future events, changes
in assumptions or changes in other factors affecting
forward-looking statements, except to the extent required by
applicable laws. If we update one or more forward-looking
statements, no inference should be drawn that we will make
additional updates with respect to those or other forward-looking
statements.
About Empire Resorts
Empire Resorts owns and operates, through its subsidiary
Monticello Raceway Management, Inc., the Monticello Casino &
Raceway, a harness racing track and casino located in Monticello,
New York, and is 90 miles from midtown Manhattan. Further
information is available at www.empireresorts.com and
www.monticellocasinoandraceway.com.
As a result of the award of a gaming facility license from the
New York State Gaming Commission, the Company, through its indirect
subsidiary Montreign Operating Company, LLC, is developing and
constructing Montreign Resort Casino – an 18-story casino, hotel
and entertainment complex with approximately 102 table games, 2,150
state of the art slot machines and 332 luxury rooms, which includes
12 penthouse suites, 8 garden suites and 7 two-story villas,
designed to meet 5-star and 5-diamond standards. For additional
information, please visit www.montreign.com.
About Credit Ratings
Credit ratings are opinions of the relevant rating agency. They
are not facts and are opinions of neither Empire nor Montreign.
They are not recommendations to purchase, sell or hold any
securities and can be changed or withdrawn at any time.
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version on businesswire.com: http://www.businesswire.com/news/home/20170124006324/en/
Empire Resorts, Inc.Charles Degliomini,
845-807-0001cdegliomini@empireresorts.com
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