Bally’s Secures $560M Financing Package for Bronx Casino Project
- Bally's Corp. has locked in $560 million in essential funding to advance development of its planned integrated casino resort in the Bronx
- Private credit firm WhiteHawk Capital Partners served as the lender for the multi-million-dollar financing package
- The capital breakdown includes $400 million in term loans available at closing, backed by a $160 million delayed-draw facility
Bally’s Corp. (NYSE: BALY) has secured $560 million in critical financing to advance its planned $4 billion casino resort in the Bronx, New York.
WhiteHawk Capital Partners, a private credit asset manager that makes middle market loans to private and public companies, is extending the required capital to the regional casino operator.
The financing package consists of $400 million in “closing date term loan commitments” and $160 million in “delayed draw term loan commitments,” according to a statement issued by the companies.
“This important financing allows us to progress the pre-construction planning process so that we are ready to complete the remainder of the capital raise and remain on schedule,” said Bally’s Chairman Soo Kim in the press release. “Furthermore, the additional liquidity provides us greater flexibility for other capital opportunities.”
The transaction is expected to close in the current quarter. Bally’s is aiming to build an integrated resort in the Bronx at the site of what was formerly known as Trump Golf Links at Ferry Point.
Bally’s, Investors May Be Breathing Sighs of Relief
News of Bally’s procuring financing from WhiteHawk emerges just weeks after the gaming company raised “substantial doubt” about its ability to continue as a going concern in a filing with the Securities and Exchange Commission (SEC).
Securing capital for the Bronx casino hotel was at the heart of Bally’s financing needs because it’s a marquee project and also because it’s the operator’s most expensive to date.
Some of the gaming company’s previous financiers appeared reluctant to meet all of the operator’s New York needs, indicating that Bally’s and its investors are likely relieved WhiteHawk stepped up to the plate.
Bally’s and the private credit firm share a recent deal history. In June, the asset manager extended $390 million in senior secured financing to The Star Entertainment Group—the struggling Australian casino operator in which Bally’s and the Mathieson family acquired a controlling stake late last year.
Los Angeles-based WhiteHawk, which is industry agnostic, typically makes loans to companies with $25 million to $1 billion-plus in annual revenue.
Bally’s Provides Chicago Update
In addition to news of the Bronx financing, Bally’s also held a brief conference earlier today on which it update analysts and investors on the $1.7 billion Bally’s Chicago project.
Delivering prepared remarks during the call, Kim skirted direct mention of Chicago’s proposed video gaming terminal expansion. Instead, he emphasized that construction at the permanent integrated resort site remains underway, asserting that Bally’s continues to “over-deliver on our promises” to the city.
Last week, Bally’s paid its $4 million tab as required by the host city agreement (HCA), confirming the operator remains committed to the city.
Following the going concern language in the SEC filing, there was speculation that if Bally’s was pressed to do so, it could unload the Chicago project and likely find a broad pool of prospective buyers, but it appears that won’t be necessary.
https://www.casino.org/news/ballys-lands-560m-in-financing-for-bronx-casino/