Latest news with #RM848.1
Malaysian Reserve
2 days ago
- Business
- Malaysian Reserve
Genting's Empire Resorts unlocks RM2.2b, secures land ownership, and wipes out debt
GENTING Malaysia Bhd's (GENM) US subsidiary, Empire Resorts Inc, is making a major strategic move to strengthen its financial position and expand its landholdings in New York. Empire is set to sell its non-gaming assets including the 332-room Resorts World Catskills hotel, 99-room Alder Hotel, 18-hole Monster Golf Course, the 2,500-seat RWC Epicenter, and multiple restaurants to Sullivan County Resort Facilities Local Development Corporation (SCRFLDC) for US$525 million (around RM2.2 billion). The cash from this sale will fund a series of strategic initiatives that reshape the company's operations. Proceeds from the sale will allow Empire to buy 1,554.6 acres of land from EPR Properties for US$201.3 million (RM848.1 million), securing ownership of the resort's existing gaming and non-gaming areas and additional land for future development. Empire will also use the funds to redeem its US$300 million (RM1.3 billion) 7.75% senior unsecured notes due in November 2026, leaving the company debt-free. Empire will continue to manage the sold non-gaming assets under a 20-year agreement with SCRFLDC, while the facilities will be operated as public benefit assets aimed at promoting employment and local development in Sullivan County. The proposal is expected to deliver several long-term benefits. Redeeming the bond strengthens Empire's balance sheet and frees it from interest obligations, while owning the land outright gives the company long-term control and flexibility. Eliminating lease payments and generating surplus cash of around US$10 million (RM42.1 million) improves working capital and cost efficiency. GENM said the initiative reinforces its commitment to expanding Empire's competitiveness in the New York gaming market and the broader northeastern US region. Empire and SCRFLDC are in the process of finalising agreements, with further details to be announced in due course. –TMR
The Sun
2 days ago
- Business
- The Sun
Genting Malaysia undertakes RM2.2 billion restructuring of US subsidiary Empire Resorts
KUALA LUMPUR: Genting Malaysia Bhd is undertaking a RM2.2 billion restructuring of its wholly owned US subsidiary, Empire Resorts Inc to strengthen its capital structure and sharpen its long-term strategic focus in the northeastern US gaming market. In a filing with Bursa Malaysia today, Genting Malaysia said Empire Resorts will dispose of its non-gaming assets – including Resorts World Catskills Hotel, Alder Hotel, Monster Golf Course, RWC Epicenter and various restaurants – to the Sullivan County Resort Facilities Local Development Corporation (SCRFLDC) for US$525 million (RM2.2 billion). Proceeds from the sale will be used to acquire 1,554.6 acres of land from EPR Properties for US$201.3 million (RM848.1 million), giving Empire Resorts full ownership of the land under both its gaming and non-gaming operations, along with additional development-ready land. The acquisition eliminates prior lease obligations, enabling Empire Resorts to better control its strategic assets. The disposal proceeds will also be used to fully redeem Empire Resorts' outstanding US$300 million senior unsecured notes due November 2026. This early redemption will leave Empire Resorts debt-free and significantly improve its financial position by eliminating high-interest payments. Following the asset sale, Empire Resortswill lease back the non-gaming properties from SCRFLDC under a long-term land lease running through 2066, ensuring continued operational control. Additionally, Empire Resorts will manage these assets under a 20-year agreement with SCRFLDC, with automatic renewals of up to 10 more years. The restructuring is expected to improve Empire Resorts' cost structure by removing lease payments to EPR and reducing interest expenses, while generating a surplus of about US$10 million (RM42.1 million) to support working capital. Genting Malaysia said this strategic realignment enhances Empire Resorts' financial flexibility and asset base, reinforcing its competitiveness in the New York State gaming sector. The group added that Empire Resorts and SCRFLDC are currently finalising the detailed terms of the agreements. This marks a key milestone in Genting Malaysia's ongoing efforts to streamline its international operations and maximise long-term shareholder value.
New Straits Times
2 days ago
- Business
- New Straits Times
Genting Malaysia to sell RM2.2bil of non-gaming assets in New York
KUALA LUMPUR: Genting Malaysia Bhd's wholly-owned Empire Resorts Inc will sell its non-gaming assets in New York for US$525 million (RM2.2 billion) as part of a plan to strengthen its capital structure and financial position. Genting Malaysia said the non-gaming assets will be sold to Sullivan County Resort Facilities Local Development Corporation (SCRFLDC). They comprise the 332-room Resorts World Catskills (RWC) hotel, 99-room Alder Hotel, 18-hole Monster Golf Course, 2,500-seat RWC Epicenter and multiple restaurants. Proceeds from the disposal will be used to buy 629.2 hectares of land from EPR Properties for US$201.3 million (RM848.1 million), redeem Empire's US$300 million (RM1.3 billion) 7.75 per cent senior unsecured notes due November 2026, and fund working capital needs. As part of the proposal, Empire will enter into a land lease with SCRFLDC until February 15, 2066 for all land under the non-gaming assets, as well as a 20-year management agreement, with automatic renewals, to manage those assets. "The proceeds from the disposal will enable Empire to fully redeem the Empire Bond, resulting in Empire being debt-free. This allows Empire to continue its focus on improving operating performance and realising its full potential," it said. It added that the acquisition of the land parcels will give Empire long-term control over 170 hectares where RWC's gaming and non-gaming facilities are located, in addition to 459 hectares of vacant land with development potential. The proposed disposal is expected to generate about US$10 million (RM42.1 million) in surplus cash for the Empire's general working capital. Genting Malaysia said the move reinforces its commitment to improving its competitive position in New York's gaming market and the broader northeastern United States.
