Bally's Corp Enters $560M Loan Agreement for Bronx Project

What Happened

• Bally’s Corporation (via subsidiary Bally’s New York Operating Company, LLC and certain guarantor subsidiaries) entered a Loan Agreement on September 4, 2026 with WhiteHawk Capital Partners, LP (as agent) and participating lenders providing senior secured term loan commitments totalling $560 million ($400M closing term loan + $160M delayed draw).
• Initial funding is subject to regulatory approval and customary conditions. Proceeds will fund pre-construction costs for the Bally’s Bronx development and for general corporate purposes. Bally’s issued a press release about the agreement on September 14, 2026.

Key Details

• Total commitments: $560 million ( $400M closing; $160M delayed draw).
• Interest: Term SOFR (with a customary floor) + 8.50% per year; maturity: 18 months after initial funding.
• Security and guarantees: Guaranteed by Bally’s New York guarantors and secured by substantially all assets of the Bally’s New York Loan Parties (subject to exceptions).
• Covenants & prepayments: Includes customary covenants limiting additional debt, dividends/restricted payments, asset sales, investments and liens; mandatory prepayment triggers (e.g., certain asset sales, casualty events, unpermitted debt); partial prepayments allowed without premium, full prepayment may incur a customary fee.
• Events of default: Typical triggers such as payment failures, breaches of representations/covenants, bankruptcy, judgment defaults and change of control; lenders can accelerate repayment and terminate unfunded commitments upon default.

Why It Matters

• This creates a significant new, short-term secured obligation tied to funding the Bally’s Bronx project, potentially changing the capital structure of the New York subsidiary.
• The loans carry a relatively high spread (8.50% over SOFR), indicating a material interest expense while outstanding; the 18‑month maturity suggests bridge-style financing that will require refinancing, repayment from project proceeds, or other sources within a short time frame.
• The security and covenants restrict the borrowers’ flexibility (limits on additional debt, asset sales, dividends, etc.), which could affect corporate and project-level decisions until the loans are repaid or refinanced.
• Key near-term milestones for investors include regulatory approvals, initial funding of the loans, and progress on the Bally’s Bronx project—each could materially affect the timing and financial impact of this financing.