Genting Empire Resorts has taken a significant step towards bolstering its financial position through a Series M subscription agreement, paving the way for substantial growth and development in the New York gaming market.
Under this agreement, Genting Empire Resorts has committed to subscribing for up to $100 million worth of Series M preferred stock of Empire Resorts, a move that promises to inject new life into the company’s ventures.
The funds secured from this subscription will serve multiple purposes, including the repayment of an existing bank facility, which amounts to approximately $58 million.
This strategic funding will also serve as working capital, providing Empire Resorts with the necessary resources to thrive in the competitive gaming industry.
One notable feature of this Series M stock is the option for conversion, available on or after December 31, 2030.
Moreover, the Series M stock is set to mature on December 31, 2038, providing a long-term financial solution for both companies.
Empire Resorts, the owner of Resorts World Catskills casino and Resorts World Hudson Valley gaming facility, has made significant strides in the New York gaming scene, offering mobile sports wagering since March 2022.
The injection of equity from Genting Empire Resorts will enable Empire to optimize its capital structure, reduce financial leverage, and correspondingly decrease interest expenses.
Furthermore, this financial boost will expedite the growth of Resorts World Hudson Valley and strengthen the operating performance of Resorts World Catskills, unlocking their full potential in the market.
Genting Empire Resorts is poised to capitalize on the expanding New York State gaming market, positioning itself for effective competition in the northeastern US region.
Resorts World Catskills will continue to reap the benefits of operating synergies with Resorts World New York City, further solidifying its position in the market.
Meanwhile, Resorts World Las Vegas, a separate arm of the Genting Group, continues its operations after its grand opening in June 2021.
In tandem with these developments, Resorts World Genting is undergoing a multibillion-dollar makeover, cementing its status as a key player in the gaming industry.
The vast facility, spanning 1.2 million square meters, features a thriving gaming section, including SkyCasino, which houses 70% of the resort’s 600 gaming tables, 2,000 slot machines, and 1,300 electronic gaming terminals, offering popular games like baccarat, roulette, and sic bo, as well as various betting options.
The injection of equity from Genting Empire Resorts promises to reshape the landscape of the gaming industry in New York and solidify Resorts World Catskills’ position, ultimately driving growth and expansion in the region.