Genting Americas’ new $2 billion bank facility has removed refinancing risks hanging over Empire Resorts and will fund the build-out of the group’s commercial casino in downstate New York, though S&P Global Ratings warned that high construction risks on the project persist.
Empire used proceeds from the facility to redeem its $300 million, 7.75 percent senior notes in full on July 2nd, four months ahead of their November 1st, 2026 maturity. The repayment also ended Genting Malaysia’s planned capital restructuring of the subsidiary, which had originally been designed to retire the debt through asset sales.
Following the redemption, S&P on July 8th raised its long-term issuer credit rating on Empire to ‘B+’ with a stable outlook, an upgrade that signals reduced default risk, though the rating remains in speculative territory. The agency then withdrew the rating at the company’s request, meaning it will no longer assess Empire’s creditworthiness.
Despite the upgrade, S&P pointed to Empire’s ‘fragile operating performance with minimal cash flow’, which leaves the company reliant on Genting Malaysia for financial support.
Genting Americas, a wholly-owned subsidiary of Malaysian casino group Genting Malaysia Bhd, secured the senior secured facility comprising delayed-draw term loans to repay an existing $775 million term loan and the Empire notes, plus a $150 million revolving credit facility for Genting New York.
Genting New York will use the remaining proceeds to fund the second phase of construction of its casino, scheduled to begin in 2027, following the award of a full gaming license.
‘We view Genting Americas’ new bank facility to be largely neutral to our rating on Genting New York,’ S&P said in its note, adding that the rating is driven by ‘the group’s highly strategic relationship with Genting Bhd’ and already factors in incremental debt to fund the New York construction.
S&P affirmed its ‘BB+’ issue rating on Genting New York’s existing $625 million senior unsecured notes, the highest tier of non-investment grade, with the recovery rating unchanged at ‘3’, indicating lenders could expect to recover between 50 percent and 70 percent of their money in a default.
The agency said subordination risks on the notes are manageable, as the $2 billion facility is jointly and severally guaranteed by all wholly owned restricted subsidiaries of Genting Americas, including Genting New York, Empire Resorts and Resorts World Omni, which operates the Miami Hilton Downtown Hotel. ‘Nonetheless, our recovery prospects recognize high construction risks on the New York casino,’ it said.
