Genting Malaysia will inject a further US$100m into its US subsidiary Empire Resorts, which operates New York’s Resorts World Catskills and Resorts World Hudson Valley, taking its total investment since 2019 to US$724m.
The funding will be done via the subscription of US$100m Series M Preferred Stock in Empire. The operator will use US$58m to pay off an existing bank loan whilst the remaining US$42m will be reserved for working capital.
Genting Malaysia owns a 49 per cent stake in Empire Resorts World Hudson Valley with Kien Huat Realty, the family trust of Genting Malaysia’s largest shareholder Lim Kok Thay, holding the remaining 51 per cent.
Genting Malaysia said: “The proposed equity injection will enable Empire to further optimize its capital structure by reducing financial leverage and correspondingly interest expense at Empire and/or [holding company] Genting Empire Resorts LLC. In addition, this will allow quicker ramp up for RWHV and enable Empire to continue its focus on strengthening RWC’s operating performance to realize its full potential.
“The proposed equity injection will also allow Genting Malaysia to reinforce its position and grow its market presence in the expanding New York State gaming market to compete effectively in the northeastern US region. RWC will also be able to continue benefitting from the operating synergies with Resorts World New York City.”