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New York Racing Association seeks court approval of $50 million DIP from GE Capital
By Caroline Salls
Pittsburgh, Dec. 12 - The New York Racing Association, Inc. requested court approval of an up to $50 million revolving credit debtor-in-possession facility from General Electric Capital Corp., according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.
Proceeds will be used for repayment in full of any advances made by the State of New York after NYRA's bankruptcy, plus interest and fees; the financing of ordinary working capital; and other general corporate needs.
The term will be the earliest of June 11, 2008, the date of pre-payment in full by NYRA, the close of business on the first business day after the entry of the final order, if, by that time, the NYRA has not paid the fees required under the fee letter, upon plan confirmation or approval of a sale of substantially all NYRA assets, the date on which the franchise or the pari-mutuel betting license with the New York State Racing and Wagering Board is terminated for any reason or upon occurrence of an event of default.
Interest will be Libor plus 300 basis points.
According to the motion, the GE Capital DIP includes more favorable terms than a previously proposed $50 million DIP from Kimco/SB Capital, including a lower commitment fee of $750,000
compared to $1 million, a lower unused commitment fee of 0.50% of the unused portion compared to 1.00% and lower interest rates of Libor plus 300 basis points compared to Libor plus 500 bps.
NYRA estimated that the GE DIP will save it $2 million over the loan proposed by Kimco and SB Capital.
A hearing is scheduled for Jan. 9.
The New York Racing Association filed for bankruptcy on Nov. 2. Its Chapter 11 case number is 06-12618.
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