PETALING JAYA: Genting Malaysia Bhd
will be injecting up to US$100mil into Empire Resorts Inc via its subsidiary, Genting ER II LLC (GERL).
In a filing with Bursa Malaysia, the company said the proposed injection involves subscribing to US$100mil worth of Series M Preferred Stock of Empire by Genting Malaysia’s subsidiary.
Empire Resorts, a Delaware corporation engaged in hospitality and gaming, operates businesses such as Resorts World Catskills (RWC), Resorts World Hudson Valley (RWHV) and mobile sports betting in New York.
“The proceeds from the Series M subscription will be utilised by Empire for working capital purposes and to fully repay an existing bank facility of approximately US$58mil held by its holding company, GERL.”
Genting Malaysia said the proposed equity Injection will enable Empire to further optimise its capital structure by reducing financial leverage and correspondingly interest expense at Empire and/ or GERL.
“In addition, this will allow a quicker ramp up for RWHV and enable Empire to continue its focus on strengthening RWC’s operating performance to realise its full potential,” it said.
