Genting Americas secures US$2bn refinancing package

Genting Americas has strengthened its financial position after securing a new US$2bn bank facility. The financing refinances existing borrowings, repays Empire Resorts' outstanding bond obligations and provides funding for future expansion projects.

The financing package significantly reduces refinancing risk for Empire Resorts, whose US$300m bond was repaid earlier this month. Following the successful refinancing, S&P Global Ratings upgraded Empire Resorts' long-term issuer credit rating to 'B+' with a stable outlook before withdrawing the rating at the company's request after the notes were fully redeemed.

At the same time, S&P affirmed its 'BB+' issue rating on Genting New York's existing senior unsecured notes, maintaining a recovery rating of '3'.

According to S&P, the new financing is broadly neutral to Genting New York's credit profile because the property's ratings continue to be supported by its strategic importance to parent company Genting Berhad. The ratings agency expects additional borrowing to fund the construction of the group's planned commercial casino in New York.

The new facility consists of delayed-draw term loans used to refinance an existing US$775m term loan, repay Empire Resorts' bond and provide a US$150m revolving credit facility for Genting New York. Remaining proceeds are expected to finance the second phase of the property's expansion, with construction targeted to begin in 2027 following the award of a full gaming license.

S&P noted that the senior secured facility is guaranteed by Genting New York and other wholly owned subsidiaries, including Empire Resorts and Resorts World Omni, which operates the Miami Hilton Downtown Hotel. While the expanded capital structure introduces additional secured debt, the agency believes subordination risks for Genting New York's existing US$625m unsecured notes remain manageable.

Although Empire's refinancing has substantially improved its liquidity profile, S&P noted that the company continues to generate limited cash flow and remains dependent on financial support from Genting Malaysia. The agency also highlighted that construction risk surrounding the planned New York casino expansion remains an important consideration in its overall credit assessment.