Latest news with #SCRFLDC
Malaysian Reserve
3 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
3 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.
BusinessToday
3 days ago
- Business
- BusinessToday
Genting US Subsidiary To Dispose Non-Gaming Assets For RM2.2 Billion
Credit: Genting Malaysia Genting Malaysia Berhad has announced that its wholly-owned US subsidiary, Empire Resorts Inc., will enhance its capital structure and financial position which involves selling non-gaming assets, acquiring land, and redeeming a substantial bond. The multi-part proposal includes the Proposed Disposal of Empire's non-gaming assets to the Sullivan County Resort Facilities Local Development Corporation (SCRFLDC) for a cash consideration of USD525 million (approximately RM2.2 billion). The assets being sold include the Resorts World Catskills hotel, the Alder Hotel, a golf course, event space, and restaurants. The group said tthe proceeds from the disposal will be used to achieve two key objectives for Empire: Debt Redemption: Empire will fully redeem its USD300 million (RM1.3 billion) Senior Unsecured Notes, a move that will make the company debt-free. Land Acquisition: Empire will purchase 1,554.6 acres of land from EPR Properties for USD201.3 million (RM848.1 million). This includes the land on which the casino and the sold non-gaming assets are located, as well as an additional 1,134.6 acres of vacant land with future development potential. The company stated that this will strengthen its asset base and provide long-term control over its property without the burden of debt. Despite the sale of its non-gaming assets, Empire will continue to manage them through a new 20-year management agreement with SCRFLDC, with the possibility of two five-year extensions. The company will also enter into a long-term land lease with SCRFLDC for the non-gaming assets, extending until February 15, 2066. The proposal is expected to enhance Empire's cost structure by eliminating lease payments to EPR and extinguishing interest on the redeemed bond. This is anticipated to generate a surplus of approximately USD10 million (RM42.1 million) for general working capital.
New Straits Times
3 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.
The Star
3 days ago
- Business
- The Star
Genting Malaysia's Empire Resorts to dispose of non-gaming assets in New York for RM2.2bil in lease deal
KUALA LUMPUR: Genting Malaysia Bhd has announced that its New York arm, Empire Resorts Inc, is disposing of its non-gaming assets to Sullivan County in New York for US$525mil (about RM2.2bil). The Malaysian conglomerate said the disposal will include the 332-room Resorts World Catskills (RWC) hotel, 99-room Alder Hotel, 18-hole Monster Golf Course, 2,500-seat RWV Epicenter, as well as as multiple restaurants to Sullivan County Resort Facilities Local Development Corporation (SCRFLDC). Empire will subsequently enter into a land lease with SCRFLDC for all the land under the non-gaming assets through Feb 15, 2066. It will also enter into a 20-year management agreement, inclusive of automatic renewal for two successive five-year periods, to manage all the non-gaming assets. With the proceeds of the proposed disposal, Empire will purchase 1,554.6 acres of land from New York-listed real estate investment trust EPR Properties for US$201.3mil (RM848.1mil). According to Genting Malaysia, purchasing the land will strengthen its asset base and give it long-term control over the 420 acres on which RWC's gaming and non-gaming assets are built. Meanwhile, there is development potential on the remaining 1,134.6 acres of vacant land. Empire will also be utilising the proceeds of the proposed disposal to redeem US$300mil (RM1.3bil) in 7.75% senior unsecured notes due on Nov 1, 2026. "The proceeds from the proposed 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," said Genting Malaysia. It is anticipated that the proposed disposal will generate surplus cash of approximately US$10mil (about RM42.1mil) to Empire for general working capital purposes.
