Mohegan agrees to invest up to US$142m more to complete Incheon IR
The Mohegan Tribal Gaming Authority had agreed to make non-dilutive equity capital contributions to Inspire Korea to ensure completion of the project.
South Korea.- Mohegan Tribal Gaming Authority has announced its commitment to completing the development of Inspire Korea, its integrated resort in Incheon, ahead of schedule. The company has agreed to invest up to KRW 185bn (US$142m) in additional funds.
The company said it will make certain non-dilutive equity capital contributions to Inspire as needed to complete the project. It also agreed to make contributions if needed to cover pre-opening expenses if costs exceed budgeted amounts and contingency funds.
The company has entered into a waiver and consent letter with its mezzanine lenders, under which the lenders “agreed to consent to certain amendments” to the casino development plan.
Earlier this month, Ray Pineault, chief executive and president of Mohegan, said that construction of the integrated resort in Incheon was ahead of schedule. He said the project was 45.3 per cent complete and 4.5 per cent ahead of schedule, with non-gaming facilities to open in the latter part of 2023, followed by the casino upon licensing.
The IR is being developed in Yeongjong Island’s Free Economic Zone near Incheon International Airport. It’s expected to feature 150 gaming tables, 700 electronic gaming machines, three five-star hotels with close to 1,250 hotel rooms and a 19,000-square metre conference space.
In January, Mohegan Tribal Gaming Authority signed a funding agreement with Hanwha Corp, one of South Korea’s largest conglomerates for the Inspire Entertainment Resort for a subordinated investment of approximately US$80m in non-registered, non-guaranteed junior convertible bonds.
The financing was to be split into two tranches of approximately US$40m, the first to be funded on December 30, 2022. The second tranche of US$40m must be funded on or before March 30, 2023. The venue aims to attract 4 million guests per year.
