Empire Resorts, Inc. Announces Series of Transactions to Strengthen Financial Position
December 28 2017 - 4:30PM
Business Wire
Empire Resorts, Inc. (NASDAQ-GM:NYNY) (“Empire” and, together
with its subsidiaries, the “Company”) announced that Kien Huat
Realty III Limited (“Kien Huat”), Empire’s largest stockholder,
agreed to exchange a Company promissory note it holds with an
outstanding balance of approximately $36.166 million for
approximately 1,380,000 shares of Empire common stock in full
satisfaction of such outstanding promissory note. The exchange of
such promissory note was based on the volume-weighted average price
of Empire’s common stock during the preceding 30-day period, which
was $26.21.
The exchange of this outstanding loan due to Kien Huat for
common stock of Empire was a condition of a $20 million loan Empire
obtained from Bangkok Bank PCL, New York Branch (“Bangkok Bank”),
in support of the Company’s existing obligations to make an
additional $9.9 million equity investment into a subsidiary that is
developing Resorts World Catskills and the related development
projects in Sullivan County, New York. The remaining balance of the
new loan from Bangkok Bank will be available for the general
corporate purposes of the Company. In further support of the loan
transaction with Bangkok Bank, Kien Huat agreed to make available
to Empire a loan in the amount of $20 million, the proceeds of
which can only be drawn and used for purposes of repaying the
Bangkok Bank loan in the event Empire is not otherwise able to
repay such loan.
In connection with these transactions, Empire and Kien Huat
terminated Kien Huat’s commitment to provide a $35 million backstop
if Empire commenced another rights offering on the same terms as
the rights offering commenced in January 2016. The proceeds of such
rights offering were also intended to provide the Company with
equity capital in support of Resorts World Catskills and the
related development projects and the general corporate purposes of
the Company. Furthermore, Kien Huat extended for an additional year
its agreement not to engage in a going-private transaction with
Empire without the prior approval of the majority of Empire’s
minority shareholders and a majority of the disinterested directors
of Empire such that this restriction now covers a period ending on
or about February 2020.
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.
Resorts World Casino Catskills 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.
The destination resort in which Resorts World Casino 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, www.rwcatskills.com and
www.monticellocasinoandraceway.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20171228005586/en/
Empire Resorts, Inc.Charles A. Degliomini, 845-807-0001Executive
Vice Presidentcdegliomini@empireresorts.com
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