Hall of Fame Resort & Entertainment Co. has signed a non-binding agreement for a bank loan of up to $25 million that could unlock more financing to help the company build its football-themed resort in Canton, Ohio.
“We are pleased to announce that the company has expanded its relationship with ErieBank, a division of CNB Bank, and entered into a non-binding term sheet for a senior secured loan facility,” Michael Crawford, the resort and entertainment company’s CEO, in a letter to shareholders posted to the company’s LinkedIn page.
“ErieBank is familiar with our business through its financing of our construction loan for the DoubleTree by Hilton in Downtown Canton, a relationship that has shown itself to be aligned with our strategic initiatives, and one we are excited to build upon with this quality lender,” said Crawford, who also is chairman and president of the Canton-based company.
The ErieBank facility is expected to close in the fourth quarter, and the resort and entertainment company has received “preliminary non-binding term sheets and communications of interest” from other lenders, he said.
Hall of Fame Resort has been refinancing its high-interest debt and selling its shares to make its balance sheet more flexible and presentable to lenders.
The company also filed an S-3 shelf registration statement with the Securities and Exchange Commission to enable future public stock offerings.
On Friday, Hall of Fame Resort said it had hired Wedbush Securities Inc. and Maxim Group LLC as agents to sell up to $50 million in its shares, receiving all of the net proceeds.
Hall of Fame Resort needs more than $200 million to finish building its resort, which is being built next to the nonprofit Pro Football Hall of Fame.
Crawford also updated shareholders on other company progress, including:
- Constellation Center for Excellence — the 75,000-square-foot, mixed-use facility is close to being finished and expected to include sports-centric research and programming, and office and retail space.
- Retail promenade — vertical construction is underway on what now is known as “The Fan Engagement Zone,” with the expectation of enclosure by the end of the year.
- Center for Performance — the site has been cleared, the contractor has been onboarded and construction is set to begin shortly.
- Hilton Tapestry hotel, also known as “The Eleven,” and an indoor football-themed waterpark — ongoing infrastructure work is being done to prepare for these facilities.
- Youth Sports Complex — will see additional amenities for fans, athletes and coaches by the end of the year while adding field capacity to host larger events beginning in spring 2022.
- Gaming — has begun to take shape through the company’s Hall of Fantasy League. “While the Atlanta Hot Wings are the last remaining unbeaten team, I wouldn’t count any of the teams out just yet,” Crawford said.
- Helix Esports Center — working with Esports Entertainment Group on the design for the center, which is expected to open in mid-2022.
“We continue to keep a close eye on developments with the Ohio Sports Betting legislation and what it means for our growing Gaming vertical,” Crawford said.
Shares of Hall of Fame Resort & Entertainment (HOFV) ended Wednesday up less than 1% at $2.60. The company posted its shareholder letter after the market closed for the day.
