PROVIDENCE – Bally’s Corp. has increased its term loan availability to $1.1 billion, which it will use to reduce debt and pay for a New York State casino license.
The new financing, the company announced on Dec. 8, includes a $600 million initial term loan and a delayed draw-term loan of $500 million. The increase is backed by Ares Management Credit funds, King Street Capital Management and TPG Credit.
The increase in credit is an amendment to a previously announced commitment letter from July, Bally's said. However, the amount from the original letter was not disclosed and representatives from Bally's did not immediately respond to requests for comment.
The increase comes after a term-loan amendment that was being arranged by Deutsche Bank AG was shelved in October, according to Bloomberg. That deal was nixed after a group of lenders banded together in a cooperation pact to block Bally’s attempt to amend a portion of a roughly $1.9 billion term loan, according to the report.
The new term loans announced on Dec. 8 will mature five years after closing, unless the company's unsecured bonds due in 2029 remain outstanding as of March 1, 2029, in which case the term loans will mature then.
Bally’s plans to combine the proceeds of the initial term loan with existing cash and funds from the previously announced sale-leaseback of the Twin River Lincoln Casino Resort for general corporate purposes. This includes the repayment of the company's existing term loan and any amounts drawn on its revolving credit facility.
With the delayed draw-term loan, Bally’s will use the proceeds to pay for the New York State casino license that is expected to be awarded at the end of the month for its proposed Bronx gaming facility.
On Dec. 2, The N.Y. State Gaming Commission’s facility selection board selected Bally’s, along with New York Mets owner Steve Cohen, who is proposing to build a casino next to Citi Field in Queens, and Genting Group, which is proposing to expand the existing casino next to Aqueduct racetrack in Queens.
Bally’s is proposing to build a $4 billion casino next to Bally’s Golf Links in the Bronx at Ferry Point, next to a golf course previously owned by President Donald Trump. The Trump Organization could receive $115 million tied to Bally’s casino plan. Bally’s purchased operating rights for the city-owned golf course from the Trump Organization in 2023 and agreed to pay the additional money to the Trump company if Bally’s won a casino license.
Bally’s proposal calls for a 250-foot-tall casino spanning 3 million square feet that will hold 3,500 slots and other gambling machines, 250 table games, and a poker room. It also includes a 500-room luxury hotel, dining and entertainment venues, a 2,000-person event center, and meeting spaces.
The N.Y. State Gaming Commission is expected to formally issue the licenses before the end of the year, as the gambling revenue is already factored into the state budget. Democratic Gov. Kathy Hochul praised the projects, saying they could unlock billions for the state’s transit system and create jobs. Opponents warn that easy access to casinos will increase gambling addiction.
(The Associated Press contributed to this report.)
