Paradise Co refinances US$390mln in Paradise City debt

Jun 13, 2023 Newsdesk Latest News, Rest of Asia, Top of the deck  

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Paradise Co Ltd, an operator of foreigner-only casinos in South Korea, has announced refinancing of KRW500 billion (US$389.5 million) out of KRW800 billion in loan money raised for phase one and phase two of the Paradise City gaming resort near the country’s main air hub, Incheon International Airport. That is according to a Friday filing to the Korea Exchange.

The exercise involves a new maturity date on the KRW500 billion for Paradise City (pictured), namely June 19, 2028, with effect from June 19 this year. The applicable interest rate was not mentioned.

That filing also said Paradise Co was refinancing KRW30 billion for working capital, with a maturity date of June 19 next year.

The announcement stated Paradise Co’s just under 49.6-million common shares held in Paradise SegaSammy Co Ltd – said to have a value equal to KRW636 billion – were used as collateral for the aggregate KRW530 billion refinancing. Paradise SegaSammy is a venture shared between Paradise Co and Japan’s Sega Sammy Holdings Inc, and promotes the Paradise City resort.

Paradise Co owns a 55-percent stake in Paradise SegaSammy, and the balance is held by Sega Sammy Holdings, affirmed Paradise Co in Friday’s announcement.

Phase one of Paradise City opened in 2017, with a foreigner-only casino and hotel accommodation. Other non-gaming facilities opened subsequently.

Paradise Co returned to profit in the first three months this year, after a KRW28.58-billion loss in the prior-year quarter. The group also runs respective hotels with foreigner-only gaming, at Walkerhill in Seoul; Paradise Jeju on Jeju island; and in the port city of Busan.

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