Bally’s (NYSE: BALY) has secured $560 million in financing to complete its planned $4 billion casino hotel in the Bronx, New York.
WhiteHawk Capital Partners, a private credit asset manager, is providing the capital for the regional casino operator. The financing includes $400 million in “closing date term loan commitments” and $160 million in “delayed draw term loan commitments.”
“This important financing allows us to progress the pre-construction planning process so that we are ready to complete the remainder of the capital raise and remain on schedule,” said Bally’s Chairman Soo Kim in the press release. “Furthermore, the additional liquidity provides us greater flexibility for other capital opportunities.”
The deal is set to close in the current quarter, with Bally’s planning to develop an integrated resort in the Bronx at the former Trump Golf Links at Ferry Point.
Bally’s, Investors May Be Breathing Sighs of Relief
Following recent concerns raised by Bally’s about its financial status, the company securing financing for the Bronx project is seen as a positive development. This project is crucial for Bally’s, being its most expensive to date, and WhiteHawk’s involvement has likely eased concerns among investors.
Bally’s and WhiteHawk have a history, with the latter previously providing financing to The Star Entertainment Group, recently acquired by Bally’s.
WhiteHawk typically provides loans to companies with annual revenues ranging from $25 million to over $1 billion, across various industries.
Bally’s Provides Chicago Update
In addition to the Bronx project, Bally’s also shared updates on its $1.7 billion Bally’s Chicago project during a recent conference call.
Bally’s Chairman Soo Kim highlighted that construction at the permanent site of the integrated resort in Chicago is progressing well. The company remains committed to the city, having recently made a $4 million payment as per the host city agreement.
Speculation about Bally’s financial future had led to concerns about the Chicago project, but it seems that the company is on track and will not need to divest from the project.