Bally’s Corporation has made a significant move to advance its New York State casino ambitions, announcing a larger financing package that raises its total loan commitments to $1.1 billion.
Bally’s Utilizes Private Credit Providers for Expanded Multi-Tier Loan Agreement
The revised agreement, outlined in a new commitment letter replacing a prior deal from mid-2025, enhances the company’s borrowing capacity through a combination of immediate and delayed term loans. Private credit lenders such as Ares Management Credit, King Street Capital Management, and TPG Credit will provide these loans.
The new arrangement features a $600 million initial term loan and an additional $500 million available through a delayed draw option. Bally’s plans to use the initial loan alongside its existing cash and proceeds anticipated from the sale and leaseback of the Twin River Lincoln Casino property in Rhode Island.
This funding will support general corporate needs, such as repaying an older loan and reducing usage of its revolving credit line. The delayed draw component is reserved for covering substantial licensing fees associated with securing a casino license in New York, and to replenish funds expended during the process.
The loan has a five-year repayment term, potentially concluding earlier, by March 2029, if the company’s unsecured bonds due that year remain unpaid. To secure this financing, Bally’s agreed to pledge a broad range of its assets as collateral, though some holdings were excluded from this deal, including Intralot S.A., the Star Entertainment Group, and specific development entities.
New Credit Arrangement Enables Bally’s to Finalize Twin River Lincoln Real Estate Transaction
The enhanced facility seemingly facilitates a long-pending real estate transaction involving Twin River Lincoln. Bally’s had previously agreed to sell the property to Gaming and Leisure Properties for approximately $735 million, although the deal was delayed due to creditor concerns. With the new financing secured, Bally’s expects to conclude the sale in early 2026, allowing GLPI to add another high-performing asset to its portfolio. Observers note this transaction aligns well with GLPI’s historical success and highlight the Rhode Island location’s continued profitability.
Bally’s Chairman Soo Kim stated that the improved financing arrangement reflects strong lender support, enabling the company to continue investing across its various segments, from online gaming to future resort projects. The company remains focused on rapid expansion, including its Chicago venture, slated for launch in the coming years, and a recent bid for a downstate New York license.
Overall, the business has delivered mixed outcomes: Bally’s recent quarterly report indicated higher-than-expected revenue, driven by gains in its Casinos & Resorts division and several acquisitions, although increased costs impacted some digital operations. Investors and analysts are closely monitoring how the company manages its growth strategies alongside its substantial debt.
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- Source: SCCGManagement.com