UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or Section 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 30, 2014
EMPIRE RESORTS, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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001-12522 |
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13-3714474 |
(State or other jurisdiction of incorporation) |
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(Commission
File Number) |
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(IRS Employer
Identification No.) |
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c/o Monticello Casino and Raceway, 204 State Route 17B,
P.O. Box 5013, Monticello, NY |
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12701 |
(Address of principal executive offices) |
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(Zip Code) |
Registrants telephone number, including area code: (845) 807-0001
Not Applicable
(Former
name or former address, if changed since last report)
Check the appropriate box below
if the Form 8-K filing is intended to simultaneously satisfy the filing obligation to the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Empire Resorts, Inc. (together with its subsidiaries, the Company),
through a wholly-owned subsidiary, Montreign Operating Company, LLC, has submitted its application to the New York State Gaming Facility Location Board for a casino to be located 90 miles from New York City, at the site of the former Concord Resort
in the Town of Thompson in Sullivan County. The casino resort will be called Montreign Resort Casino and a complete branding initiative around the Montreign Resort Casino will be unveiled in the coming weeks.
In the event that the Company is awarded a gaming facility license, it currently anticipates financing the associated costs and expenses of
the license award and the development of a destination gaming resort (the Casino Project) with a combination of debt and equity financing. The actual terms of the financing and the size of the Casino Project will necessarily vary
depending upon a number of factors that are currently unknowable. For the debt portion of the Companys financing, Credit Suisse AG has committed to provide a senior secured credit facility of up to a maximum amount of $478 million (the
CS Credit Facility). The CS Credit Facility provides that it may change the terms of the credit facility to ensure successful syndication. Again, depending upon a variety of factors outside the control of the Company, such as the number
of licenses in the region, the amount of financing needed for the Casino Project may be less than the maximum amount of the commitment. CS Securities would act as sole book runner and sole lead arranger. The CS Credit Facility is subject to various
conditions precedent, including the Companys receipt of a gaming facility license and evidence of an equity investment in the Company of up to $150 million. The total amount of financing needed for the Casino Project may be less than the
maximum amounts of the debt and equity commitments, depending upon a variety of factors outside the Companys control.
The Company
may launch a rights offering to its existing equity holders in an amount necessary to meet the requirements of the CS Credit Facility and to redeem certain outstanding Series E preferred stock of the Company in accordance with an existing settlement
agreement. If the Company launches a rights offering meeting certain criteria, Kien Huat Realty III Limited (Kien Huat), the Companys largest stockholder, has committed to exercising its proportionate share of subscription rights
that would be issued. In addition, Kien Huat has agreed it would enter into a standby purchase agreement to exercise all subscription rights not otherwise exercised by other stockholders, upon the same terms as the other stockholders. For such
commitment, the Company agreed to pay Kien Huat a fee of 1% of the maximum amount that may be raised, of which .5% was paid upon execution of the commitment and the remaining .5% is due if a rights offering is launched.
Although the Company has obtained these debt and equity financing commitments to meet the license application requirement to demonstrate its
ability to finance the costs and expenses of the Casino Project, the Company has reserved the flexibility to reassess its financing alternatives if it is granted a gaming facility license and either proceed with the financing options described here
or pursue alternative means of financing the Casino Project on terms and conditions more beneficial to the Company. The ultimate investment that the Company will make in the Montreign Resort Casino will depend on the number and location of
competitive licenses issued by New York State.
On June 30, 2014, the Company issued a press release relating to the Companys
submission of its gaming facility application and the related financing commitments. A copy of such press release is attached as Exhibit 99.1 hereto.
Item 9.01. |
Financial Statements and Exhibits. |
(d) Exhibits.
99.1 |
Press Release, dated June 30, 2014 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Dated: June 30, 2014
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EMPIRE RESORTS, INC. |
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By: |
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/s/ Joseph A. DAmato |
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Name: Joseph A. DAmato |
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Title: Chief Executive Officer |
Exhibit 99.1
June 30, 2014
EMPIRE RESORTS SUBMITS
SULLIVAN COUNTY CASINO
PROPOSAL TO NEW YORK STATE GAMING FACILITY LOCATION BOARD
COMPANY ALSO ANNOUNCES COMMITTED FINANCING
(Monticello, NY) Empire Resorts, Inc. (NASDAQ-GM: NYNY) (together with its subsidiaries, Empire), through a
wholly-owned subsidiary, Montreign Operating Company, LLC, has submitted its application to the New York State Gaming Facility Location Board (NYSGFLB) for a casino to be located 90 miles from New York City in the Town of Thompson, in
Sullivan County, NY. The casino resort will be called Montreign Resort Casino and will be located at the site of Adelaar, which is owned by EPR Properties (NYSE: EPR) (EPR). A complete branding initiative around the Montreign
Resort Casino will be unveiled in the coming weeks.
The total combined investment in the Montreign Resort Casino and Adelaar is expected to be in excess
of $1 billion, which includes $630 million from Empire and additional EPR financing investments for a waterpark hotel and adventure park, Rees Jones redesigned Monster Golf Course and retail, restaurant, shopping and entertainment
properties. The size of the project, including the amount of capital necessary to complete it, will vary based upon the number and location of competitive licenses issued by New York State in our region. The project has in place essentially all of
its approvals and permits to commence construction immediately upon the awarding of a destination gaming facility license.
To support its application,
Empire has obtained commitments to provide financing from Credit Suisse AG and Kien Huat Realty III, Limited (Kien Huat), Empires largest stockholder. Credit Suisse AG has committed to provide a senior secured credit facility in an
amount of up to $478,000,000. The credit facility is subject to various conditions precedent, including Montreigns receipt of a gaming facility license and evidence of an equity investment in Empire of up to $150,000,000. Empire may launch a
rights offering to meet the equity investment requirement. If Empire launches a rights offering in support of the Montreign Resort Casino, Kien Huat has agreed to exercise its proportionate share of subscription rights that would be issued and,
additionally, to exercise all subscription rights not otherwise exercised by other holders, upon the same terms as the other holders. Empire expects that the commitments demonstrate its ability to finance the costs and expenses of constructing the
proposed Montreign Resort Casino. Nonetheless, Empire has reserved the flexibility to reassess its financing alternatives if it is awarded a gaming facility license.
After years of planning and community engagement, we believe our Montreign Resort Casino, and the non-gaming resort attractions that encompass the
overall Adelaar master plan, is exactly the type of tourism driven development envisioned by the Upstate New York Gaming Economic Development Act, said Emanuel Pearlman, Chairman of the Board of Empire. Importantly, given a process
that permits either one or two casino licenses in our region, Empire has the advantage of committed financing in place, no matter the competitive environment. We are confident that if selected, our best proposal can fully rejuvenate Sullivan County
and the entire Hudson Valley economy.
We are very excited to partner with Empire in taking this next important step in realizing the vision we
have held to and worked towards for years, commented David Brain, President and CEO of EPR Properties. Brain continued, Quite simply, there is no other location which equals the breadth of offerings we deliver as a four season
destination resort. Our guests will come for world class golf, a first-class waterpark lodge and a special gaming experience along with dining and shopping close by, all set in the beautiful Catskills. Adelaar is uniquely positioned to reinvigorate
the upstate New York economy and we are ready to get started.
Weve been working with Empire for nearly three years, and included in
this filing is Sullivan Countys hopes and dreams of a better economic future, added Sullivan County Legislature Chairman Scott Samuelson. This casino project and the entire Adelaar resort development will drive significant tourism,
and is clearly the economic boost that our County needs. We could not be more supportive of Empire and EPRs plans.
This project will be
a source of pride and true economic development for everyone in the Town of Thompson and Sullivan County, said Thompson Supervisor Bill Rieber. The Town of Thompson has granted this project full SEQRA approvals, making this application a
front runner that can rapidly deliver the jobs and economic opportunity the Town of Thompson and Sullivan County so richly deserve.
Peter Ward,
president of the New York Hotel Motel Trades Council, which represents over 30,000 hotel, hospitality and gaming workers in New York and New Jersey said, This casino resort project will bring new energy to a depressed region of New York State
by creating dependable local union employment, while delivering significant economic benefits for local businesses, and consequently will have an important and positive impact on tourism in upstate New York. Empire is not only a current strong union
partner, but a strong community partner, committed to creating good union jobs in a region that desperately needs them.
The entire
brotherhood of the Hudson Valley Building & Construction Trades Council is in complete support of this project said Todd Diorio, President of the Trades Council. Empire has substantially completed construction drawings and its
Project Labor Agreement is complete. Our members are looking forward to building this project.
Cathy Paty, President and CEO of the Sullivan County
Chamber of Commerce added, Adelaar is an amazing project which will provide development for many years to come. It will bring financial gains across the board for both Sullivan County residents and local businesses. Adelaar is the
spark that Sullivan County needs to thrive once again.
Sullivan County Partnership CEO Marc Baez stated, This application moves Sullivan
County and the Catskills one step closer to reviving our standing as a world class resort destination. We have already seen what Empire can do for local businesses in this region, and we know the benefits will be far greater if this project is
approved. Our community is 100% behind it.
The Sullivan County and Catskills tourism industry will benefit greatly from the addition of Adelaar to our
community, said Roberta Byron-Lockwood, President and CEO of the Sullivan County Visitors Association. Resort guests and employees alike will undoubtedly explore the Sullivan County and Catskills area, and our businesses are ready to
welcome them with open arms. This resort will afford us growth in room inventory as well positioning in the domestic and international travel industry marketplace.
Empire has recently entered into a memorandum of understanding (MOU) with the Upstate Theater Coalition for a FairGame LLC (Fairgame),
a coalition of upstate theatres and venues that includes Bethel Woods Center for the Arts, Ulster Performing Arts Center and Bardavon Opera House. Darlene Fedun, Bethel Woods CEO stated, I am happy to report that we have executed a MOU with
Empire Resorts which is part of the siting evaluation criteria for a Gaming License in the Catskill Region. Bethel Woods already knows Empire as a great local partner and Empire understood the concerns of our potentially impacted venues, readily and
openly discussed options and solutions, and have committed to the support of the mission of all venues within the region. Bethel Woods and the Fairgame coalition both support Empires application for a casino license.
Mr. Pearlman concluded, Led by our CEO Joseph DAmato and Empires Executive management team, a stellar team of 29 professional firms and
a wide variety of other experts worked tirelessly to submit this comprehensive response to the NYSGFLBs Request for Applications for a gaming facility license. A remarkably voluminous submission, this comprehensive work product represents over
three years of dedication and hard work. After it is reviewed by the NYSGFLB, we look forward to making our public presentation as soon as possible.
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.
Cautionary Statement Regarding Forward Looking Information
This press release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. These statements include statements about our plans, strategies, financial performance, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, our
actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as may,
could, expect, intend, plan, seek, anticipate, believe, estimate, predict, potential, continue, likely,
will, would and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while
considered reasonable by Empire and its management team, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, among others, levels of spending in business and leisure segments as
well as consumer confidence; the parties plans for signing and closing on definitive transaction documents; the construction commencement date for the development project; relationships with associates and labor unions and changes in labor
law; the financial condition of, and our relationships with, third-party property owners and hospitality venture partners; risk associated with the introduction of new brand concepts; changes in the competitive environment in our industry and the
markets where we operate; the timing of the receipt of regulatory and governmental approvals for the development project, including the issuance of a gaming facility license to us, changes in federal, state or local tax law; general volatility of
the capital markets. A more complete description of these risks and uncertainties can be found in the filings of Empire with the U.S. Securities and Exchange Commission. We caution you not to place undue reliance on any forward-looking statements,
which are made as of the
date of this press release. 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.
Contacts
Empire Resorts, Inc.
Charles Degliomini, 845-807-0001
cdegliomini@empireresorts.com
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