Genting Malaysia to inject US$100m into Empire Resorts

KUALA LUMPUR: Genting Malaysia Bhd (GENM) plans to inject up to US$100 million (RM456m) into Empire Resorts Inc (Empire) via its subsidiary, Genting ER II LLC (GERL).

In its filing with Bursa Malaysia, the company said the proposed injection involves subscribing to US$100 million worth of Series M Preferred Stock of Empire by Genting Malaysia's subsidiary.

"The proceeds from the Series M subscription will be utilised by Empire for working capital purposes and to fully repay an existing bank facility of approximately US$58 million held by its holding company, (GERL)," it said in a filing with Bursa Malaysia Securities Bhd yesterday.

GENM said the latest equity injection will be funded by internal funds.

It said the injection will enable Empire to further optimise its capital structure by reducing its financial leverage and corresponding interest expense, Genting Malaysia said.

"In addition, this will allow a quicker ramp up for Resorts World Hudson Valley (RWHV) and enable Empire to continue its focus on strengthening Resorts World Catskills's (RWC) operating performance to realise its full potential," it added.

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