Genting Malaysia Proposes $100 Million Injection for US-Facing Empire Resorts
Date: 2024-01-12 Author: Dima Zakharov Categories: CASINO
Genting Malaysia's Bold Move
In a strategic play, Genting Malaysia (GENM) has unveiled a groundbreaking proposal to infuse an impressive $100 million into its American venture, Genting Empire Resorts. This sizable investment marks a significant shift in the gaming industry, with far-reaching implications.
Funding Through Series M Subscription
The injection will be financed through a Series M subscription agreement, with Genting Empire Resorts committing to subscribing up to $100 million worth of Series M preferred stock. These funds will serve various purposes, including bolstering working capital and settling an existing bank debt of approximately $58 million.
A Timely Conversion and Maturation
Investors will have the option to convert the Series M stock after December 31, 2030, and the stock itself will mature on December 31, 2038.
Empire Resorts' New York Focus
Empire Resorts is renowned for owning and operating the Resorts World Catskills casino and Resorts World Hudson Valley gaming facility, both located in New York. Furthermore, it has been offering mobile sports wagering services in the state since March 2022.
Enhancing Capital Structure and Market Presence
GENM envisions that this equity injection will not only optimize Empire's capital structure by reducing financial leverage and interest expenses but also expedite growth for Resorts World Hudson Valley and strengthen Resorts World Catskills' performance.
A New York Gaming Market Expansion
This strategic move will also enable GENM to reinforce its market position and expand its presence in the thriving New York State gaming market, positioning itself competitively in the northeastern US region. Resorts World Catskills will continue to benefit from synergies with Resorts World New York City.
Resorts World Genting's Transformation
This proposal follows Resorts World Genting's impressive multibillion-dollar makeover. Covering a sprawling 1.2 million square meters, this facility features SkyCasino, boasting 70% of the resort's 600 gaming tables, 2,000 slots, and 1,300 electronic gaming terminals. Top games at SkyCasino include baccarat, roulette, and sic bo, along with various betting options.
GENM's vision extends beyond this bold move, with Resorts World Genting at the forefront of their expansion plans. This development is a testament to the ever-evolving nature of the gaming industry, where strategic investments like these can reshape the landscape.
