Genting Malaysia has announced a US$40 million equity injection into US casino operator Empire Resorts via a subscription agreement for Series G Preferred Stock.
The equity injection, to be funded via Genting Malaysia’s internally generated funds, forms part of the company’s refinancing plan related to Empire’s outstanding debt of US$540 million as of 31 December 2019.
It is also in addition to an investment of US$151 million by Kien Huat Realty III Ltd, the family trust of Genting Chairman Lim Kok Thay, with which Genting Malaysia formed a joint venture last year to acquire all outstanding shares in Empire.
Those proceeds, Genting Malaysia said, are already being utilized “for Empire’s working capital requirements, to partially service Empire’s existing indebtedness and bank borrowings as well as to defray fees, incidental expenses and interest payable in relation to any future refinancing arrangement.”
In a Friday filing, Genting Malaysia added that its latest US$40 million injection ensures Empire will have funds for refinancing and for working capital if required given the temporary closure of its Resorts World Catskills (RWC) casino in the state of New York due to the COVID-19 pandemic.
Notably, the company said that RWC had recorded a 48% increase in gross gaming revenue in FY19 to US$208.7 million, capitalizing on synergies with Genting Malaysia’s Resorts World Casino New York.
“The equity injection … will enable Empire to continue its focus on strengthening RWC’s operating performance to realize its full potential,” Genting Malaysia said.
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