Genting Malaysia’s planned $525 million asset sale in New York will ease refinancing pressure at its struggling US arm, Empire Resorts, while highlighting the group’s approach to managing subsidiary debt, analysts at CreditSights said.
Empire, which owns Resorts World Catskills, will sell most of its non-gaming assets, using the proceeds to repay a $300 million bond due in 2026, buy nearby land and fund working capital. The company will then lease back part of the land and run the divested assets under a 20-year management contract.
CreditSights said the deal eliminates refinancing risk at Empire and will help lower Genting Malaysia’s leverage, estimating its pro-forma net debt ratio could improve to around 4.6-4.7 times earnings. Empire is also expected to save about $23–25 million annually in interest costs once the bond is repaid.
The analysts noted they were ‘surprised’ Genting Malaysia did not step in with direct funding, but said the move signals the group’s preference to let units handle refinancing independently before deploying parent-level support.
For Genting Berhad, the ultimate holding company, the transaction is seen as having only a limited impact on credit metrics, with analysts expecting leverage to remain steady.
CreditSights also added that the refinancing underscores Empire’s importance within Genting’s wider US strategy, particularly as the group pursues a coveted downstate New York casino license.
