Bally’s Corporation has arranged $1.1 billion in new loan commitments, setting the stage for debt refinancing and providing support for major development projects, including its pursuit of a full commercial casino license in New York. The package, backed by Ares Management Credit funds, King Street Capital Management, and TPG Credit, replaces a prior commitment agreement from last year.
The company confirmed that the financing includes a $600 million initial term loan and up to $500 million in delayed draw term loans. The five-year structure features an option for earlier maturity in March 2029 if Bally’s unsecured notes due that year remain outstanding. The loans will be secured by most of Bally’s material assets and those of its wholly owned subsidiaries, subject to limited exceptions.
Funding from the initial term loan will be combined with the company’s available cash and proceeds from the previously announced sale-leaseback of the Twin River Lincoln Casino. These resources will go toward repaying existing borrowings and supporting general corporate needs. The delayed draw portion is earmarked for licensing obligations tied to the New York State casino bid, allowing Bally’s to cover or replace liquidity used to pay required fees.
Support From Lenders Addresses Financial Pressures
The transaction comes as Bally’s manages a sizable debt load—$5.66 billion as of the most recent quarter—and faces significant near-term financial requirements, including a $500 million licensing fee connected to its New York project. According to disclosure filed by the company (pdf), the amended commitment letter allows lenders to take an equity interest in several assets under certain conditions, such as the New York development, the company’s online division Intralot, and its stake in Australia’s Star Entertainment Group, where Bally’s recently obtained a 38% interest.
Company chairman Soo Kim emphasized the importance of lender backing during this phase of investment, saying, “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 resorts developments.”
Credit analysts at CBRE Credit Research noted that the financing helps resolve several ongoing concerns around the company’s credit profile, including funding sources, upcoming maturities, and capacity to move forward with development plans. The arrangement also provides clearer visibility for the proposed South Bronx project, where Bally’s intends to invest roughly $4 billion. The plans for that site include a $2.3 billion integrated resort, the $500 million license fee, and a set of community and infrastructure commitments such as transportation improvements and park enhancements. The project framework envisions 3,500 slot machines, 250 table games, a hotel with 507 rooms, an event venue, and additional amenities.
Additional Developments and Next Steps
The company expects the refinancing to close during the first quarter of 2026, subject to the completion of the Twin River Lincoln Casino transaction and repayment of the existing term loan. Citizens Capital Markets acted as the financial advisor, while Fried, Frank, Harris, Shriver & Jacobson LLP provided legal counsel.
Recent financial results also highlight the company’s mixed performance across divisions. Bally’s reported third-quarter revenue of $663.7 million, exceeding analyst expectations and rising 5.4% from the same period last year. Growth in the Casinos & Resorts segment—bolstered by acquisitions earlier in the year—and improvements in North America Interactive contributed to the gains. However, higher corporate expenses and increased losses in the North American Interactive division tempered the quarter’s results.
Analysts continue to adjust their outlooks amid the company’s shifting financial landscape. Stifel recently lifted its price target on Bally’s from $10 to $20 while maintaining a Hold rating. Citizens reaffirmed a Market Perform rating as Bally’s pursues multiple development initiatives, including a planned Chicago location projected to open in late 2026 or 2027.
