Gaming and entertainment company Bally's has secured a comprehensive $560 million loan package from WhiteHawk Capital Partners. This financing is earmarked for the development of a casino in the Bronx, as the company announced on Monday. WhiteHawk Capital Partners is a private credit investment manager. The agreement includes a pre-funded loan of $400 million, as well as $160 million from a delayed-draw term debt. The deal is expected to close in the third quarter.
The loans received are intended to finance the pre-construction phase and other expenses associated with the planned casino complex. The project covers an area of 3 million square feet on the site of Bally's Golf Links at Ferry Point. It also includes a 500-room hotel and a 2,000-person event centre. Bally's acquired the Bronx site, which was previously leased to Donald Trump as a public golf course, for $156.6 million from New York City in February, as reported by Commercial Observer.
Soo Kim, Bally's Chairman, stated in a release that this crucial financing allows the company to advance the pre-construction planning process. This will enable it to be ready to complete the remaining capital raise and keep to schedule. He added that the additional liquidity also provides Bally's with greater flexibility for further capital opportunities.
Bob Louzan, Managing Partner at WhiteHawk Capital Partners, confirmed in a statement that the financing will support the project's pre-construction work as Bally's progresses its broader financing plan. This underlines the strategic importance of this capital injection for the overall project development.
The Bally's Bronx Casino project at 450 Hutchinson River Parkway is one of three gaming projects approved by New York State in December. The other two selected projects are Resorts World New York City at the former Aqueduct Raceway in Jamaica, Queens, and Hard Rock's Metropolitan Park next to Citi Field in Flushing, Queens. The latter is being developed in partnership with Steve Cohen, the owner of the New York Mets.
