GGRAsia – Mohegan announces new amendment to credit agreement

Mohegan announces new amendment to credit agreement

Feb 15, 2023 Newsdesk Industry Talk, Latest News

United States-based casino operator Mohegan Tribal Gaming Authority says it has agreed with some of its lenders to a second amendment to an existing credit agreement. The firm is currently developing the Inspire Entertainment Resort (pictured in an artist’s rendering), an under-construction leisure complex with foreigner-only casino, at Incheon, near the South Korean capital Seoul.

Under the amendment, certain lenders “agreed to extend the maturity date of their commitments and loans under the facility to November 1, 2025,” stated Mohegan in a Tuesday update.

According to the announcement, some of the lenders have also agreed to change some of the financial covenants stated in the credit facility.

“After giving effect to the extension, an aggregate principal amount of US$233.5 million in revolving credit commitments were outstanding with a maturity date of November 1, 2025,” stated Mohegan.

The company’s chief executive, Raymond Pineault, said last week that Mohegan would be “making additional equity investments to fund a variety of items” related to the under-construction casino resort in South Korea.

Mr Pineault said the company expected to open some non-gaming portions of the resort “in the latter part of 2023, with the casino opening shortly thereafter upon licensing.”

His comments were made on a conference call with investment analysts following the firm’s quarterly results.

Mohegan Inspire includes a foreigner-only casino, plus leisure offerings and 1,270 rooms and suites. The whole complex is being developed by a local unit of Mohegan. When construction is completed, the resort will also have a 15,000-seat multi-purpose arena, according to the promoter.

According to the company, project completion for Mohegan Inspire “was 45.3 percent at the end of January,” with construction progress about “4.5 percent ahead of plan”.