Paradise Co Ltd is to pledge some shares it holds in Paradise SegaSammy Co Ltd, the operating entity of the Paradise City integrated resort (pictured), as collateral for a KRW100 billion (US$68.2 million) loan from five South Korean banks.
Paradise SegaSammy is Paradise Co’s venture with Japan’s SegaSammy Holdings Inc. Paradise Co holds a 55-percent stake in the joint venture.
The information was in a Tuesday filing to the Korea Exchange. The filing did not mention the reason for the move.
The Paradise City complex – including its foreigner-only casino – opened in 2017. The resort is located in Incheon.
The asset being provided as the collateral for the loan is Paradise Co’s 49,576,129 common shares in Paradise SegaSammy.
The actual value of the shares is put at KRW120 billion, according to the filing, therefore the “collateral ratio” is 120 percent, said Paradise Co.
The period of collateral provision is to run from December 9 this year, to December 9, 2026.
The lenders are: Hana Bank; Woori Bank; Kyongnam Bank; IM Bank; and Gwangju Bank.
The Paradise SegaSammy unit saw its EBITDA decline 16.9 percent year-on-year in the third quarter, to KRW31.15 billion, according to a Paradise Co results filing on Monday. Net profit from the unit was just under KRW19.18 billion, up 5.3 percent from a year earlier.
