Empire Resorts, Inc. Announces Commitments for $35 Million Tack-On to Construction Term Loan
May 24 2017 - 1:21PM
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
announced that it has secured commitments from lenders to increase
by $35 million the aggregate principal amount of Montreign’s Term B
loans, which are part of its senior secured first lien term loan
facility. Upon the closing of the additional $35 million Term B
loans, the term loan facility will provide an aggregate of $520
million senior secured first lien term loans, consisting of $70
million of Term A loans and $450 million of Term B loans. The new
$35 million of Term B loans will be priced at 99.75% of the
principal amount and will otherwise be issued under substantially
the same terms and conditions and be fungible with the existing
Term B loans except the term loan facility requirement to
contribute additional equity to Montreign shall be reduced. The net
proceeds of the incremental Term B loans will be used by Montreign
and its subsidiaries to fund the costs relating to the development
and construction of the Resorts World Catskills casino, as well as
the entertainment village and the golf course being developed at
the site of a destination resort in Sullivan County, New York.
The transaction is expected to close on or about May 26, 2017
and remains subject to final documentation, customary closing
conditions and approval of the New York State Gaming
Commission.
This press release is for informational purposes only and is not
an offer to buy or the solicitation of an offer to sell any
securities, loans or indebtedness of the Company.
About the Company
The Company was awarded a gaming facility license by the New
York State Gaming Commission to develop and operate a resort casino
to be located at the site of a four-season destination resort being
developed in the Town of Thompson in Sullivan County, approximately
90 miles from New York City. The Company is the sole holder of a
gaming facility license in the Hudson Valley-Catskills Area, which
consists of Columbia, Delaware, Dutchess, Greene, Orange, Sullivan
and Ulster counties in New York State.
The resort casino, which is being developed by Montreign
Operating Company, LLC, an indirect, wholly-owned subsidiary of
Empire, will be named Resorts World Catskills and will include an
18-story casino, hotel and entertainment complex with approximately
100,000 square feet of casino floor, over 100 table games, 2,150
state of the art slot machines, a poker room and private gaming
salons. Guest amenities will include 332 all-suite luxury rooms,
which include 12 penthouse suites, 8 garden suites and 7 two-story
villas, two indoor pools, a spa and fitness center -- all designed
to meet 5-star and 5-diamond standards. Guests will be able to
choose from over 10 varied bar and restaurant experiences,
including fine dining, and an Italian steakhouse created by
celebrity chef Scott Conant. Guest can also enjoy year-round live
entertainment at the over 2,000-seat event center, casino bars,
restaurants and lounges.
Expected to open in March 2018, the destination resort in which
Resorts World Catskills is located also will include an
entertainment village providing additional entertainment, food and
accommodations and a Rees Jones-redesigned golf course, both of
which are being developed by subsidiaries of Empire. In addition,
the destination resort will include an indoor waterpark lodge.
The Company also owns and operates Monticello Casino and
Raceway, a 45,000-square foot video gaming machine and harness
horseracing facility located in Monticello, New York, approximately
90 miles northwest of New York City.
Further information about the Company is available at
www.empireresorts.com.
Cautionary Statement Regarding Forward Looking
Information
This press release includes "forward-looking statements"
intended to qualify for the safe harbor from liability established
by the Private Securities Litigation Reform Act of 1995. These
statements include statements about our plans, strategies,
financial performance, prospects or future events and involve known
and unknown risks that are difficult to predict. As a result, our
actual results, performance or achievements may differ materially
from those expressed or implied by these forward-looking
statements. In some cases, you can identify forward-looking
statements by the use of words such as "may," "could," "expect,"
"intend," "plan," "seek," "anticipate," "believe," "estimate,"
"predict," "potential," "continue," "likely," "will," "would" and
variations of these terms and similar expressions, or the negative
of these terms or similar expressions. Such forward-looking
statements are necessarily based upon estimates and assumptions
that, while considered reasonable by the Company and our management
team, are inherently uncertain. We caution you not to place undue
reliance on any forward-looking statements, which are made as of
the date of this press release. 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. For a further description of
these factors, see the risk factors set forth in the Company's
filings with the Securities and Exchange Commission, including the
Company's annual report on Form 10-K for the fiscal year
ended December 31, 2016.
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/20170524006015/en/
Empire Resorts, Inc.Charles Degliomini,
845-807-0001cdegliomini@empireresorts.com
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