Genting Malaysia said it’s injecting $40 million of capital into its loss-making U.S. unit, Empire Resorts, through the issue of series G preferred stock.
The shares rank higher to the company’s common shares and are on a par with its F series preferred stock, the company said in a statement to Bursa Malaysia.
The shares can be converted into ordinary stock on or after December 30, 2030 at a price of $20 per common share.
The money will be used to meet debt obligations and for working capital if needed at the company, which controls Resorts World Catskills and the Monticello Raceway in New York State.
Last August, the Malaysian operator agreed to buy a stake in Empire from a company controlled by its chairman Tan Sri Lim Kok Thay and to concentrate the stock in a joint venture with that company. They have since launched an offer to all remaining shareholders to take Empire Resorts private.
In December, ratings agency S&P Ratings downgraded the credit rating of parent company Genting Bhd, in part due to the expectation it would need to support the debt burden at Empire.