Genting Americas Inc, a wholly-owned subsidiary of international casino developer Genting Malaysia Bhd, has secured a new US$2-billion bank facility. Part of it is intended to fund the second phase of the Genting group’s casino in downstate New York (pictured), with construction scheduled to begin in 2027.
The information was disclosed by S&P Global Ratings in a ratings action published on Wednesday. The institution reaffirmed its ‘BB+’ notes rating for Genting New York LLC, one notch below investment grade. The latter firm is also a subsidiary of Genting Malaysia.
The Genting Americas’ bank facility “comprises a mix of delayed-draw term loans to repay the existing US$775 million term loan and a US$150 million revolving credit facility for Genting New York, as well as the US$300-million note for Empire Resorts Inc,” S&P said.
It added: “Genting New York will utilise the remaining proceeds to fund the second phase of construction of the New York casino that is targeted to start in 2027.”
The New York State Gaming Commission voted in December last year to award three full casino licences for downstate New York, including one to Genting New York.
Genting New York’s proposal entailed a US$5.5-billion expansion of the existing venue through to 2030.
“We view Genting Americas’ new bank facility to be largely neutral to our rating on Genting New York,” S&P said. “Our base case factors in incremental debt from the group to fund the construction of its New York commercial casino.”
It added: “The rating on Genting New York is driven by the group’s highly strategic relationship with Genting Bhd.”
The latter is the ultimate parent of the Genting group of companies.
Last week, Genting Malaysia announced it had shelved plans to recapitalise its U.S.-based subsidiary Empire Resorts after the latter repaid its US$300-million 7.75-percent senior secured notes due on November 1, 2026, which had formed the basis of the proposed restructuring.
