Intended to help strengthen its financial position, Empire Resorts Inc. and its largest stockholder, Kien Huat Realty III Ltd., agreed on a number of transactions.
Kien Huat agreed to exchange a roughly $36.2 million promissory note for about 1,380,000 shares of Empire common stock, pursuant to a condition on a $20 million loan secured from Bangkok Bank PCL New York Branch.
The loan supports Empire's existing commitments to make an additional $9.9 million equity investment into a subsidiary that is developing Resorts World Catskills and connected development projects in Sullivan County, N.Y.
Kien Huat is also providing Empire with a $20 million loan to repay the Bangkok Bank loan, if needed.
Empire and its stockholder agreed to terminate the latter's $35 million backstop commitment for the company — earmarked for the Resorts World Catskills development and for general corporate purposes — if the former launches another rights offering with terms similar to one commenced in January 2016.
The stockholder also agreed to a one-year extension of an agreement, which will now end on or about February 2020, that says it will not launch a bid to privatize the casino developer and operator without prior approval of the majority of Empire Resorts' minority shareholders and a majority of the disinterested directors.