Sullivan County Plans $561M Bond Sale to Purchase Resorts World Catskills Non-Gaming Assets

The Sullivan County Resort Facilities Local Development Corp. plans to sell $561 million of bonds to purchase non-gaming operations at Resorts World Catskills from Genting Group. The bonds will mature in 2040 and the anticipated sale date is Aug. 27, with a closing date of Sept. 4. The purchase aims to maintain jobs at the resort and provide economic-development services for a General Assessment District under an agreement with the County of Sullivan Industrial Development Agency.

The Sullivan County Resort Facilities Local Development Corp. (SCRFLDC) has announced plans to sell $561 million of bonds to purchase non-gaming operations at Genting Group's Resorts World Catskills. The tax-exempt revenue bonds are expected to mature on December 15, 2040 [1][2].

The anticipated marketing period for the bonds is August 14 through August 26, with an expected sale date of August 27 and a closing date of September 4. Genting's Montreign Operating Co. will manage and operate the non-gaming assets, which include two hotels, the Monster golf club, the Awana spa, the Epicenter venue, and restaurants [1][2].

The recently formed development corporation aims to maximize employment opportunities and better position the county to maintain jobs at the resort. This becomes increasingly important following the loss of approximately 300 jobs from the closure of a Frito Lay plant and competition from potential downstate casinos [1][2].

SCRFLDC will provide economic-development services for a General Assessment District under an agreement with the County of Sullivan Industrial Development Agency. Caesars Entertainment, which hopes to build a Times Square casino, is one of the participants vying for up to three downstate casino licenses. Others include New York Mets owner Steve Cohen and Bally's [1][2].

Genting, which owns Resorts World New York City in Queens, plans to transform that location into a full-fledged casino with live games such as poker and blackjack. Similarly, MGM Resorts is pursuing a similar effort for Empire City Casino in Yonkers. SCRFLDC acknowledges the competitive threat from the potential saturation of gaming options but sees an opportunity for cross-selling if Resorts World New York City secures a license [1][2].

The bonds have no credit rating and are being underwritten by KeyBanc Capital Markets [1][2].

References:
[1] https://www.marketscreener.com/news/development-corporation-plans-bond-sale-to-buy-resorts-world-catskills-non-gaming-operations-ce7c51d9df89f72c
[2] https://www.marketwatch.com/story/development-corporation-plans-bond-sale-to-buy-resorts-world-catskills-non-gaming-operations-95b3481d