Genting Malaysia Berhad’s (GENM) wholly-owned US subsidiary, Empire Resorts, has announced a plan to sell the non-gaming assets of its casino resort in New York for $525 million. The move is aimed at strengthening Empire’s financial position and eliminating a key refinancing risk.
The assets being sold, which include two hotels, a golf course, and multiple restaurants, will be purchased by Sullivan County Resort Facilities Local Development Corporation.
Genting will be using the proceeds to repay a $300 million bond due in November 2026. Purchase $201 million worth of unencumbered land near the resort. Provide approximately $10 million in surplus cash for working capital.
As part of the transaction, Empire will lease back a portion of the land and enter into a 20-year agreement to continue managing the sold non-gaming assets.
Analysts View Deal as a Positive for GENM
According to a research report by CreditSights, the deal is a “credit positive” for GENM. It will eliminate the risk of needing to refinance the Empire bond and is expected to improve GENM’s pro-forma net leverage from 4.9x to 4.6x-4.7x. The report also notes that the deal demonstrates the Genting Group’s willingness to let its subsidiaries manage their own debt refinancing needs.
The deal also strategically positions Empire for future growth. By purchasing the land, the company secures long-term control over its existing facilities and acquires over 1,100 acres of vacant land with significant development potential. This move aligns with GENM’s strategy to expand its business footprint in the New York market.
