Bally’s Secures Key New Term Loans Totaling $1.1 Billion

Bally’s, which is building casinos in downtown Chicago and Las Vegas as well as sitting on the verge of being awarded a license to build a venue in downstate New York, has secured $1.1 billion in loans.

The gaming company announced Tuesday it entered an “amended and restated commitment letter (A&R letter)” with Ares Management Credit Funds, King Street Capital Management, and TPG Credit based on a previous commitment letter announced in July. According to filings with the Securities and Exchange Commission, the A&R letter increases financial commitments to $600 million for an initial term loan and up to $500 million for a delayed term loan.

“We appreciate the strong support of our lenders, as the A&R Commitment Letter further strengthens Bally’s liquidity position while enabling continued investment in our strategic growth pipeline — spanning online gaming, our casino portfolio, and our expanding resorts developments,” Bally’s Chairman Soo Kim said in a statement.

Bally’s $1.8 billion Chicago casino is slated to open next September, while its $1.5 billion Las Vegas project — which includes a baseball stadium — is aiming for a 2029 opening. Bally’s $4 billion proposal to build a venue in the Ferry Point section of the Bronx and potentially open in 2030 was an unexpected finalist for one of the three $500 million downstate New York casino licenses. A decision by the New York State Gaming Commission (NYSGC) on awarding those is expected by the end of the year.

Where the money is being targeted

According to Bally’s, the delayed term loan will be used to “pay or replenish liquidity” in connection with the New York downstate casino licensing fees and other expenses. If awarded the license by the NYSGC as expected, Bally’s would likely have to pay the $500 million fee before the end of the year.

Leverage concerns have followed Bally’s throughout a multiyear national expansion that began prior to its rebranding from Twin Rivers in November 2020. The Gaming Facility Location Board said in its selection document it was concerned about Bally’s “high leverage” and expressed a need for it to “oversee its liquidity carefully.” The group that forwarded Bally’s application to the NYSGC for final consideration also noted its “execution risk is partially mitigated by strong financing indications of interest from large banks and investors.”

The initial term loan, along with existing cash on Bally’s balance sheet and recently announced sale and leaseback of Bally’s Twin River Lincoln Casino in Rhode Island, will be used for what it called “general corporate purposes.” That includes repayment on an existing term loan or “any amounts drawn on Bally’s revolving credit facility.”