A previously announced transaction that will involve Genting Malaysia selling off a raft of non-gaming assets associated with its Resorts World Catskills (RWC) integrated resort in New York state has been delayed for a second time to allow investors involved in the complex deal more time to align.
As previously reported by Inside Asian Gaming, the transaction will see Genting Malaysia subsidiary Empire Resorts sell the 332-room RWC hotel, 99-room Alder Hotel, 18-hole Monster Golf Course, 2,500-seat RWC Epicenter and multiple restaurants to Sullivan County Resort Facilities Local Development Corporation (SCRFLDC) for a cash consideration of US$525 million.
Empire would then purchase 1,554.6 acres of land parcels – including those associated with RWC – from real estate investment trust EPR Properties for US$201.3 million and enter into a 20-year management agreement with SCRFLDC to manage all of the non-gaming assets.
According to the latest update from business news outlet Bloomberg, the delay is linked to a high-yield municipal bond transaction that will fund SCRFLDC’s purchase of the RWC non-gaming businesses.
Initially pegged for pricing on 27 August, the issuance of those bonds has now been delayed twice with no exact date confirmed. This, according to a spokesperson for KeyBank Capital Markets, which is running the sale, is “to allow additional time to answer questions and educate investors about the credit. They added that there has been “significant interest from the market in the offering,” as per Bloomberg’s report. SCRFLDC is described as a not-for-profit organization created under New York’s economic-development law.
The transaction is seen as an important one for Genting Malaysia and it’s embattled Empire Resorts brand by enabling Empire to redeem its US$300 million 7.75% Senior Unsecured Notes due 1 November 2026, resulting in Empire becoming debt free and allowing it to “focus on improving operating performance and realizing its full potential”.
Aside from RWC, Empire’s assets include Resorts World Hudson Valley and mobile sports wagering operator Resorts World Bet.
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