Bally’s Corporation has moved to ease several long-standing financial pressures with a new $1.1 billion term-loan package that analysts at CBRE say ‘solves several lingering overhangs’ and allows management to pivot toward its flagship New York development.
In a dispatch this week, CBRE said the refinancing — built around an initial $600 million draw — will retire Bally’s outstanding $1.48 billion legacy term loan B, addressing what analysts described as a major concern.
‘The transaction cleans up the Lincoln amendment overhang,’ the note said, adding that the structure ‘uses 100 percent of proceeds to pay down debt — a legacy sticking point between Bally’s and lenders.’
The deal also includes a $500 million delayed-draw tranche that CBRE said ‘can fund the expected $500 million NYC casino license fee,’ with the entire package expected to close in the first quarter of 2026.
According to CBRE, sources of funds include the $600 million initial draw, the $500 million delayed draw, roughly $735 million in proceeds from the Lincoln sale-leaseback and an estimated $143 million draw on the company’s revolver. The analysts said Bally’s will direct the money to paying off the legacy facility and securing the New York license.
Resorts World New York City (under Genting), Bally’s Corporation, and a partnership of billionaire Steve Cohen (owner of NY Mets NBL team) with Hard Rock International are currently bidding for a New York City gaming license, with the New York State Gaming Facility Location Board having already recommended their bids to the NYS Gaming Commission for final approval.
New York bid gathers momentum
Bally’s New York $4 billion proposal is now expected to be approved by year-end (as well as the other two licenses), with the company planning a $2.3 billion integrated resort with 3,500 slots, 250 table games, a 507-room hotel and an event center, alongside park, transport and community upgrades.
While the delayed-draw loan would cover the license fee, CBRE warned that Bally’s still faces a substantial funding gap.
As part of its bid, Gaming & Leisure Properties Inc (GLPI) offered a non-binding commitment to finance ‘100 percent of the real estate assets of the project,’ including $1.95 billion of construction costs and $500 million for land acquisition. But CBRE noted the commitment ‘was contingent on further due diligence and complete analysis.’
Even with GLPI’s support, Bally’s must still finance soft costs, fees and community obligations. ‘Bally’s has liquidity on hand but is currently FCF (free cash flow) negative,’ CBRE said, adding that the company will need revolver capacity to complete its planned Chicago IR project.
Despite the heavy debt load, CBRE said the scale of the New York opportunity may draw additional investors. But analysts cautioned that the development ‘will carry a high LTV (loan-to-value ratio) which could further pressure an already levered balance sheet.’
