While the majority of the Casino-related drama in New York unfolds in the lower part of the state, there is also a saga with a high bet that unfolds.
A municipal bond deal of $ 561 million coupled to a Catskills-Casino is put on ice and pauses a transaction that would reform the ownership of the non-gaming activa of the resort, Bloomberg reported. The non-ratement, high-interest bonds were set at the price of 27 August under the management of Keybanc Capital Markets.
Instead, the offer was drawn at the last minute when investors insisted to hire a legal adviser – known in Muni Markets as the buyer of the buyer – before he continued.
The resort has two hotels, a golf course, a spa and fitness center, several restaurants, conference room and event room.
The proceeds from the deal is reserved for the Resorts World Cats skills of Genting Group in Monticello, New York, where the hospitality arm is planning to buy the country under the resort, with retired debts and a long -term management contract. The bonds would be issued via the Sullivan County Resort Facilities Local Development Corp., a non-profit entity that was established according to the Economic Development Act.
Resorts World hires its site from a real estate investment strust. Taking control of the country would give the operator more flexibility to manage his capital stack, including paying off a balloon payment that will be due next year.
A spokesperson for the casino refused to comment on the delay. Representatives of Keybanc and the development group also remained mother.
Resorts World Catskills open In 2018 as an economic engine for tourism in the area. But the resort quickly failed to generate enough cash to cover costs, according to a report from the Empire Resorts Reit.
The income can be further threatened by the arrival of Downstate casinos. A report from the province estimated that the Catskills Resort could lose 26 percent of gross gaming income when one casino opens in New York City and open up to 76 percent of the multiple casinos.
Genting is one of the companies that compete for a Downstate Casino license, and is planning an extension of $ 5 billion of its facilities at the Aqueduct racing track in Jamaica, Queens.
– Holden Walter-Warner
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