Jan 18, 2019 4:53 pm EST


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Untitled Document

Monticello, New York, January 24,  2017—Montreign Operating Company, LLC (“Montreign”), a wholly-owned indirect  subsidiary of Empire Resorts, Inc. (NASDAQ-GM:NYNY) (“Empire” and, together  with its subsidiaries, the “Company”) today (the “Closing Date”) announced the  successful closing of its senior secured first lien term loan facility and  senior secured revolving credit facility.   The financing provides an aggregate of $485 million senior secured first  lien term loans, consisting of $70 million of Term A loan commitments and $415  million of Term B loan commitments, and a $15 million senior secured revolving  credit facility.  The Term A term loan  and the revolving credit facility have a maturity date of January 24, 2022 and  the Term B term loan has a maturity date of January 24, 2023.

The first lien term loans and  the revolving credit facility are both floating rate facilities.  Interest will accrue on outstanding  borrowings under the Term A loan at a rate equal to LIBOR plus 5.0% per annum,  or an alternate base rate plus 4.00% per annum.   Interest will accrue on outstanding borrowings under the Term B loan at  a rate equal to LIBOR (with a LIBOR floor of 1%) plus 8.25% per annum, or an  alternate base rate plus 7.25% per annum.   Interest will accrue on outstanding borrowings under the revolving  credit facility at a rate equal to LIBOR plus 5.0% per annum, or an alternate  base rate plus 4.0% per annum.  Montreign  will also pay a commitment fee, in an amount of 2.5% per annum from the Closing  Date through March 24, 2018 and 5.0% per annum thereafter, to each Term A loan  lender on the undrawn amount of each Term A lender’s Term A loan commitment.
  The Term A loan may be borrowed  during the period from the Closing Date to July 24, 2018, subject to certain  conditions.  The Term B loan was borrowed  in full on the Closing Date.  The  proceeds of the Term B loan were used to pay fees and expenses related to the  financing and fund various lender-controlled accounts.  The proceeds in these lender-controlled  accounts, which accounts will include proceeds of the Term A loan upon  borrowing, will be used by Montreign and its subsidiaries to fund the costs  relating to the development and construction of Montreign Resort Casino, as well  as the entertainment village and the golf course, to be located at the Adelaar  destination resort in Sullivan County, New York.  The proceeds of the revolving credit facility  may be used for working capital needs, capital expenditures and other general  corporate purposes.

The borrower under the credit  facilities is Montreign.  The obligations  of Montreign are guaranteed by Montreign’s subsidiaries and are secured by  security interests in substantially all of the assets of the Montreign and its  subsidiaries, as well as by a pledge of the membership interests in  Montreign.  In connection with the senior  secured first lien term loans, Empire provided a completion guaranty capped at $30  million on the completion of construction of Montreign Resort Casino and the entertainment  village.

Cautionary  Statement Regarding Forward Looking Information

Statements  in this press release that are not historical facts are “forward-looking  statements” that may involve material risks and uncertainties. The Company  wishes to caution readers not to place undue reliance on such forward-looking  statements, which statements are made pursuant to the Private Securities Litigation  Reform Act of 1995, and as such, speak only as of the date made. For a full  discussion of risks and uncertainties, which could cause actual results to  differ from those contained in the forward-looking statements, please see  Empire’s filings with the U.S. Securities and Exchange Commission.  We  undertake no obligation to update publicly any of these forward-looking  statements to reflect actual results, new information or future events, changes  in assumptions or changes in other factors affecting forward-looking  statements, except to the extent required by applicable laws. If we update one or more  forward-looking statements, no inference should be drawn that we will make  additional updates with respect to those or other forward-looking statements.                                                  
  About  Empire Resorts

Empire Resorts owns and operates,  through its subsidiary Monticello Raceway Management, Inc., the Monticello  Casino & Raceway, a harness racing track and casino located in Monticello,  New York, and is 90 miles from midtown Manhattan. Further information is  available at www.empireresorts.com and www.monticellocasinoandraceway.com.

As a  result of the award of a gaming facility license from the New York State Gaming  Commission, the Company, through its indirect subsidiary Montreign Operating  Company, LLC, is developing and constructing Montreign Resort Casino – an  18-story casino, hotel and entertainment complex with approximately 102 table  games, 2,150 state of the art slot machines and 332 luxury rooms, which  includes 12 penthouse suites, 8 garden suites and 7 two-story villas, designed  to meet 5-star and 5-diamond standards. For additional information, please  visit www.montreign.com.

About Credit Ratings

Credit ratings are opinions of the  relevant rating agency.  They are not  facts and are opinions of neither Empire nor Montreign. They are not  recommendations to purchase, sell or hold any securities and can be changed or  withdrawn at any time.

  Charles Degliomini
  Empire Resorts, Inc.