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Bally’s Corporation has secured $1.1 billion in term loans after amending a prior commitment from last year. According to the company, the financing package includes an initial term loan of $600 million plus up to $500 million in delayed draw term loans. The package is backed by Ares Management Credit funds, King Street Capital Management, and TPG Credit.
The loans have a five-year structure. However, they can mature earlier, in March 2029, if Bally’s unsecured notes due that year remain outstanding. Notably, the loans will be secured by most of Bally’s material assets, allowing the lenders to take an equity interest in various assets under certain conditions, including the New York development, Intralot, and the company’s stake in Australia’s Star Entertainment Group.
Debt refinancing and funding for major development projects
The new term loans secure the stage for debt refinancing and the funding of major development projects, including the planned casino in New York. Bally’s Board Chairman Soo Kim said, “We appreciate the strong support of our lenders, as the A&R Commitment Letter further strengthens Bally’s liquidity position while enabling continued investment in our strategic growth pipeline – spanning online gaming, our casino portfolio and our expanding resort developments.”
The initial $600 million term loan will be combined with proceeds from the previously announced sale-leaseback of the Twin River Lincoln Casino and the company’s available cash. All of these resources will then be used to repay existing loans and support general corporate needs.
The delayed draw term loans will later be used to pay the licensing fee for the New York State casino or replace funds already used to pay the fee. Notably, the New York license fee is set at $500 million. Bally’s plans to invest up to $4 billion in that project, including a $2.3 billion integrated resort with a hotel with 507 rooms, a 2,000-person event venue, and other amenities. Moreover, the gaming floor is planned to host 3,500 slot machines and 250 tables.
Interestingly, Bally’s also owes the Trump Organization $115 million now that it was awarded a downstate casino license. Notably, Bally’s purchased the remaining 20-year operating lease for the 16-acre Ferry Point golf course from the Trump Organization for $60 million. Additionally, the company agreed to a non-refundable contingency fee of $115 million if the site successfully secured a downstate New York casino license. This clause was triggered when Bally’s won one of the highly contested casino licenses in the Empire State. However, formal approval will be on December 31, and applicants are currently undergoing financial stability and environmental impact checks before then.
Easing the financial pressure
Notably, the new term loan comes as Bally’s grapples with an increasingly dire financial situation. The company has a substantial debt load of $5.66 billion as of the most recent quarter.
Wall Street rating agencies recently downgraded Bally’s credit profile over the financial risks associated with its upcoming casino in Chicago, which will cost approximately $1.7 billion. Last year, the company reached a $940 financing agreement with GLP to cover a funding gap of about $800 million. Moreover, the company closed a $250 million IPO in August 2025 to an open pool of investors.
Interestingly, Bally’s had considered raising $250 million through a separate IPO that was limited to minorities and women. However, pushback from the American Alliance for Equal Rights, a conservative activist group, prevented the offering. Moreover, the SEC blocked the IPO over outdated financial information.
Credit Analysts at CBRE Credit Research noted that the financing helps overcome various concerns about Bally’s financial profile. Nevertheless, it is worth noting that Bally’s reported third-quarter revenue of $663.7 million was 5.4% higher than the same period last year, exceeding analyst expectations. To this end, analysts continue adjusting their outlooks as the company’s financial landscape continues shifting. Notably, Stifel recently increased its price target on Bally’s from $10 to $20 and maintained its Hold rating.
Bally’s expects the refinancing to close during the first quarter of 2026. Notably, successful closure is subject to the completion of the Twin River Lincoln Casino transaction and the repayment of the current term loans. Citizens Capital Markets provided financial advisory services, while Fried, Frank, Harris, Shriver & Jacobson LLP provided legal counsel.
