MONTICELLO, N.Y.--(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.