Bally’s secured senior secured term loan commitments of $400 million at closing and $160 million through delayed draws to support the Bally’s Bronx project. The proceeds are intended for pre-construction spending and general corporate purposes, while funding remains subject to regulatory approval and other customary conditions.

Key Highlights

  • The loans will bear interest at Term SOFR plus 8.50% per annum, subject to a customary floor.
  • WhiteHawk Capital Partners is acting as agent for the lenders under the loan agreement.
  • Bally’s New York loan parties will guarantee the loans and secure them with substantially all of their assets, subject to exceptions.

Bally’s (NYSE: BALY) Corporation secured senior secured term loan commitments totaling $400 million at closing and $160 million through delayed draws for the Bally’s Bronx project. The proceeds can fund pre-construction costs and general corporate purposes, subject to regulatory approval and other customary conditions.

Bronx Financing Structure and Loan Protections

Bally’s New York Operating Company and certain subsidiaries entered the loan and security agreement on September 4 with WhiteHawk Capital Partners as agent for the lenders. The loans will carry interest at Term SOFR plus 8.50% per annum, subject to a customary floor. The agreement also includes mandatory prepayments tied to certain asset sales, casualty events and unpermitted Debt issuances. The agreement permits voluntary prepayments, although repayment in full carries a customary prepayment fee. Covenants restrict additional indebtedness, dividends and other restricted payments, asset sales, investments and liens, subject to exceptions and qualifications. Construction and development covenants apply to the Bally’s Bronx project, while customary defaults can allow acceleration of repayment and termination of unfunded commitments. Bally’s said the financing will support further development and pre-construction planning for the project. The company also said the additional Liquidity provides flexibility for other capital opportunities.