American Racing & Entertainment, LLC Announces Closing of Financing for Expansion of Tioga Downs Casino
Nichols, NY, Oct. 24, 2016 (GLOBE NEWSWIRE) -- American Racing & Entertainment, LLC (“ARE” or the “Company”), owner and operator of Tioga Downs Casino located in Nichols, New York (“Tioga”), and Vernon Downs Casino Hotel located in Vernon, New York (“Vernon”), today announced that it has raised $90 million in new senior secured debt facilities (the “Facilities”) consisting of an $80 million Delayed Draw Term Loan facility plus a $10 million Revolving Credit facility. The Facilities will enable the Company to complete a $134 million expansion of Tioga (the “Tioga Expansion”), transforming the property into a full-scale casino and hotel offering the latest slot machines, table games and entertainment amenities.
Once the Tioga Expansion is complete, Tioga will be the leading regional gaming destination in the Southern Tier of New York featuring an approximate 33,000 square foot casino offering 942 slot machines and 44 table games, a 161-room hotel, 3 restaurants, 3 bars/lounges, an approximate 6,500 square foot event/banquet center, spa and an 18-hole golf course and country club (located off-site). Construction of the new hotel and event center began in September and is expected to be finished in October 2017.
Tioga was formally approved by the NY Gaming Commission for its casino license on August 30, 2016. Tioga is working closely with the NY Gaming Commission and its staff to complete the remaining steps required by law and regulations to convert the property into a full scale casino and looks forward to opening the property as promptly as possible.
Jeff Gural, CEO of ARE, commented, "Getting this project financed is not only a win for us as a company, but also the Southern Tier community. It will act as an immediate catalyst for economic growth by creating over 550 jobs and attracting more people to the area." He added, “Our business is already booming so I am really encouraged to see the Tioga Expansion continue to drive visitation and improve the local economy.”
Innovation Capital, LLC acted as financial advisor to ARE. Duane Morris LLP acted as legal counsel to ARE. Goldberg Weprin Finkel Goldstein LLP acted as real estate legal counsel to ARE. Wells Fargo Securities, LLC and Capital One, N.A. acted as joint lead arrangers and joint book runners, with Wells Fargo Bank, N.A. acting as administrative agent.
About American Racing & Entertainment, LLC
Founded in 2005, ARE owns and operates Tioga Downs Casino located in Nichols, New York, and Vernon Downs Casino Hotel located in Vernon, New York. Tioga was established in 1974 as a quarter horse track known as Tioga Park. Today, Tioga offers entertainment for everyone with entertainment amenities that include 802 video gaming machines, several food venues, live harness racing, a sports bar, and live indoor and outdoor concerts throughout the year. Vernon first opened in 1953 and following its purchase by ARE in 2006, now operates 777 video gaming machines, a 150-room hotel, live harness racing, a catering and entertainment facility, and numerous dining options.
Stephen J. Donnelly, President, Dynamic Innovation Group LLC
firstname.lastname@example.org / (719) 337-8238: mobile
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CONTACT: Stephen J. Donnelly, President, Dynamic Innovation Group LLC email@example.com / (719) 337-8238: mobile