Bally’s Takes on Challenge: Bridging $800M Financing Gap for Chicago Casino
Bally's battles with a $800 million deficit for its proposed casino in Chicago have drawn criticism and skepticism. The corporation investigates finance possibilities, including as property sales and possible debt issuance, to close the gap and forward the project, despite being the target of inquiries and criticism about bid processes.
Bally's Closes the $800 Million Chicago Casino Funding Gap
NYSE: Bally's Representatives from BALY informed NGCB authorities on Wednesday that the business is working to secure potential shareholder backing and an enhanced capital structure in order to close a roughly $800 million liquidity shortfall for its permanent Chicago casino.
The local casino operator's pocketbook has been reduced in half as a result, dropping from the $1.1 billion commitment to the $300 million plan. According to those ordered by Bally's Chief Financial Officer Marcus Glover, Bally is currently in discussions with one potential financial partner and anticipates finding a solution quickly.
In the meeting held at the NGCB, Bally's CFO, Forrest Glover, stated that the business will purchase the land where the Tribune building stood in order to construct a permanent casino. According to him, the project is currently $1.1 billion in debt, of which $800 million has not yet been paid back. However, he thinks that the impending negotiations will allow the financial gap to be closed by summer.
The chief financial officer's statement, which was a significant portion of the story, stated that Bally's had already used $250 million of the $500 million credit facility to buy land for our permanent casino, which is located at the Freedom Center.
The Bally's Chicago Casino Permit Controversy
Following the awarding of its sole license in Chicago in May 2022 by former Mayor Lori Lightfoot, Bally's has faced criticism over the impartiality of the selection process and the viability of the city as a location for an integrated resort a la Vegas.
One of the schemes, a Twitter account that isn't formally associated with the municipal council, has been actively reviewing and disclosing all project-related information.
According to a recent Bally post by the group, the financial future needs to change in light of the $800 million shortfall.
Bally's paid $1.7 billion for the Chicago project at first, but that amount eventually decreased and is currently at $1.1 billion. This cut has increased speculation and raised concerns about the company's capacity to fulfill its obligations.
Reports of ongoing investigations, including federal inquiries, into the circumstances underlying the permit award to Bally's have added to these worries. The project's dispute highlights the difficulties the gaming business is having navigating the Chicago casino's development.
Monetary alternatives Bally's is considering it for the Chicago Casino Project
Bally's CFO, Marcus Glover, declined to go into specifics about potential backup strategies for raising the $800 million required to finish the Chicago casino project. Nonetheless, the business claims it has ways to get money if talks with a possible lender don't work out.
Among other things, Bally's might sell assets or sell Tropicana Las Vegas the operating rights to maximize the value of its real estate holdings. These solutions are accessible, but they come with drawbacks, like high interest rates on corporate debt and possible dilution of equity.
During talks with the NGCB, Glover did not explore these other approaches, therefore it is unclear how the Chicago casino project will be financed going forward.