Empire Resorts Announces Bridge Loan and Rights Offering
06 November 2010 - 4:16AM
Business Wire
Empire Resorts, Inc., (NASDAQ: NYNY) today announced that it has
received a financing commitment from Kien Huat Realty III Limited
(“Kien Huat”), the company’s largest stockholder, to provide a
short-term bridge loan to the company in the aggregate principal
amount of $35 million (the “Bridge Loan”). If consummated, the
proceeds of the Bridge Loan, together with available funds, will be
used to repay in full the company’s obligations under its 5½%
convertible senior notes due 2014 (the “Notes). Any proceeds not
necessary for repayment of the Notes will be used for working
capital and related fees and expenses. The repayment of the Notes
from the proceeds of the Bridge Loan would be made in accordance
with the terms of that certain settlement agreement entered into by
the company on September 23, 2010 among the trustee under the
indenture governing the Notes and the beneficial owners of the
Notes party thereto.
Following the extension of the Bridge Loan and the repayment of
the Notes, the company intends to conduct a rights offering upon
terms to be determined by the board of directors of the company. In
the rights offering, if conducted, the company would distribute to
all holders of the company’s common stock a non-transferrable right
to purchase additional shares of the company’s common stock at a
price of $0.8837 per share, which is equivalent to the conversion
price of the restated notes that would be issued pursuant to the
settlement agreement if the Notes are not repurchased. Kien Huat
has also committed to exercise all of its basic rights to purchase
additional shares allocated to Kien Huat with respect to its
current ownership of the company’s common stock. If, upon the
completion of the rights offering, the proceeds of the rights
offering are insufficient to repay in full all amounts outstanding
on the Bridge Loan, Kien Huat has agreed to convert the full amount
remaining unpaid into a convertible term loan with a term of two
years at an interest rate of 5% per annum convertible into the
company’s common stock at a price equal to the $0.8837 per share
exercise price of the rights issued in the rights offering.
This news release shall not constitute an offer to sell or a
solicitation of an offer to buy securities, nor shall there be any
sale of these securities in any state or jurisdiction in which such
an offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
About Empire Resorts
Empire Resorts owns and operates the Monticello Casino &
Raceway, a harness racing track and casino located in Monticello,
New York, and 90 miles from midtown Manhattan. For additional
information, please visit www.empireresorts.com.
Cautionary Statement Regarding Forward Looking
Information
Statements in this press release regarding the company’s
business that are not historical facts are “forward-looking
statements” that may involve material risks and uncertainties. The
company wishes to caution readers not to place undue reliance on
such forward-looking statements, which statements are made pursuant
to the Private Securities Litigation Reform Act of 1994, and as
such, speak only as of the date made. For a full discussion of
risks and uncertainties, which could cause actual results to differ
from those contained in the forward-looking statements, see “Risk
Factors” in the company’s Annual Report on Form 10-K for the most
recently ended fiscal year, as amended, as well as the company’s
Quarterly Report on Form 10-Q for the most recently ended fiscal
quarter.
Empire Resorts (NASDAQ:NYNY)
Historical Stock Chart
From Jun 2024 to Jul 2024
Empire Resorts (NASDAQ:NYNY)
Historical Stock Chart
From Jul 2023 to Jul 2024