United States-based casino operator Mohegan Tribal Gaming Authority says it has agreed to invest up to KRW185.0 billion (US$142.0 million) in fresh funds to complete its casino resort project at Incheon, near the South Korean capital Seoul.
The additional funds will be invested into Inspire Integrated Resort Co Ltd, the group’s subsidiary developing the Mohegan Inspire Entertainment Resort (pictured in an artist’s rendering).
In a Thursday press release, the casino firm said it had agreed to make “certain non-dilutive equity capital contributions” to its subsidiary “as needed”, to ensure the completion of the casino resort project.
Such commitment is for up to the U.S. dollar equivalent of KRW155 billion, to be invested “at various times on or before September 30, 2023,” stated the company.
The firm also agreed to make additional contributions to its subsidiary, “if necessary”, in order for it “to pay for certain development costs or pre-opening expenses if those costs exceed budgeted amounts and available contingency funds in an amount up to KRW30 billion”.
The firm said additionally that, under the deal, it had entered into a “waiver and consent letter” with its mezzanine lenders, by which those lenders “agreed to consent to certain amendments” to the development plan for the casino project.
Mohegan’s chief executive, Raymond Pineault, had confirmed earlier this month that the company would have to make “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.”
Mohegan Inspire includes a foreigner-only casino, plus leisure offerings and 1,270 rooms and suites. When construction is completed, the resort will also have a 15,000-seat multi-purpose arena, according to the promoter.
The casino firm announced earlier this month that it had agreed with some of its lenders to a second amendment to an existing credit agreement. Under the latest amendment, certain lenders “agreed to extend the maturity date of their commitments and loans under the facility to November 1, 2025,” stated Mohegan.
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”We committed to the government to provide a full business idea and plan for Phase 1b around 12 months after the casino opens, therefore, probably early 2025”
President of the Mohegan Inspire Entertainment Resort in South Korea