MONTICELLO, N.Y.--(BUSINESS WIRE)--Dec. 28, 2017--
Empire Resorts, Inc. (NASDAQ-GM:NYNY) (“Empire” and, together with its
subsidiaries, the “Company”) announced that Kien Huat Realty III Limited
(“Kien Huat”), Empire’s largest stockholder, agreed to exchange a
Company promissory note it holds with an outstanding balance of
approximately $36.166 million for approximately 1,380,000 shares of
Empire common stock in full satisfaction of such outstanding promissory
note. The exchange of such promissory note was based on the
volume-weighted average price of Empire’s common stock during the
preceding 30-day period, which was $26.21.
The exchange of this outstanding loan due to Kien Huat for common stock
of Empire was a condition of a $20 million loan Empire obtained from
Bangkok Bank PCL, New York Branch (“Bangkok Bank”), in support of the
Company’s existing obligations to make an additional $9.9 million equity
investment into a subsidiary that is developing Resorts World Catskills
and the related development projects in Sullivan County, New York. The
remaining balance of the new loan from Bangkok Bank will be available
for the general corporate purposes of the Company. In further support of
the loan transaction with Bangkok Bank, Kien Huat agreed to make
available to Empire a loan in the amount of $20 million, the proceeds of
which can only be drawn and used for purposes of repaying the Bangkok
Bank loan in the event Empire is not otherwise able to repay such loan.
In connection with these transactions, Empire and Kien Huat terminated
Kien Huat’s commitment to provide a $35 million backstop if Empire
commenced another rights offering on the same terms as the rights
offering commenced in January 2016. The proceeds of such rights offering
were also intended to provide the Company with equity capital in support
of Resorts World Catskills and the related development projects and the
general corporate purposes of the Company. Furthermore, Kien Huat
extended for an additional year its agreement not to engage in a
going-private transaction with Empire without the prior approval of the
majority of Empire’s minority shareholders and a majority of the
disinterested directors of Empire such that this restriction now covers
a period ending on or about February 2020.
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
Resorts World Casino Catskills 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.
The destination resort in which Resorts World Casino 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,
View source version on businesswire.com: http://www.businesswire.com/news/home/20171228005586/en/
Source: Empire Resorts, Inc.
Empire Resorts, Inc.
Charles A. Degliomini, 845-807-0001