By Devika Patel
Knoxville, Tenn., Aug. 19 - Empire Resorts, Inc. arranged a $55 million private placement of stock with Kien Huat Realty III Ltd. Kien Huat also will provide the company with a $10 million credit facility.
The company will sell 35,506,040 common shares to LRC Acquisition LLC. Of the shares, 6,804,188 will be sold in an initial tranche for $11 million; the remaining 27,701,852 shares will be sold for $44 million following receipt of stockholder approval.
Proceeds will be used to pay interest on the company's convertible senior notes due July 31, 2014, for working capital and to repay in full any remaining debt under the $4.4 million senior credit facility with the Park Avenue Bank of New York.
As previously reported, the company received a default notice from Park Avenue Bank on July 28 for failing to repay the facility at maturity.
The company also said it is in litigation with the owners of its $65 million of convertible senior notes due July 31, 2014 because it believes that put rights to accelerate the principal of the notes on July 31 were not exercised in the manner required by the indenture. It intends to enforce its right under the indenture to repay the principal on the original maturity date, July 31, 2014. Accordingly, proceeds from this financing will not be used to retire the notes.
Empire Resorts is a Monticello, N.Y., operator of the Monticello Raceway.
| Issuer: | Empire Resorts, Inc.
|
| Issue: | Common shares, credit facility
|
| Amount: | $65 million
|
| Warrants: | No
|
| Investor: | Kien Huat Realty III Ltd
|
| Pricing date: | Aug. 19
|
| Stock symbol: | Nasdaq: NYNY
|
| Stock price: | $1.97 at close Aug. 18
|
| Market capitalization: | $93.3 million
|
|
|
| Shares
|
| Amount: | $55 million
|
| Shares: | 35,506,040
|
|
|
| Facility
|
| Amount: | $10 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
