Paradise Co refinances US$389.5m in Paradise City debt

Paradise Co has secured KRW500bn (US$389.5m) refinancing for its Paradise City gaming resort.

South Korea.- Paradise Co says it has refinanced KRW500bn (US$389.5m) out of a total loan amount of KRW800bn for its Paradise City resort. The funds relate to phase I and phase II of the IR.

Under the terms of the refinancing agreement, the KRW500bn will now have an extended maturity date set for June 19, 2028, with the effective date commencing on June 19 this year. The interest rate remains undisclosed.

Paradise Co also revealed its intention to refinance an additional KRW30bn for working capital. The maturity date for this particular portion is slated for June 19 2024. Paradise Co has used its just under 49.6 million common shares in Paradise SegaSammy Co as collateral for the aggregate refinancing amount. These shares, estimated to be worth KRW636bn, were instrumental in securing the agreement. 

Paradise SegaSammy Co is a joint venture between Paradise Co and Sega Sammy Holdings. Paradise Co maintains a controlling stake of 55 per cent in Paradise SegaSammy, while Sega Sammy Holdings holds the remaining balance. 

Phase I of the Paradise City resort was inaugurated in 2017, featuring a foreigner-only casino and luxurious hotel accommodations. Subsequently, the resort expanded its offerings by introducing various non-gaming facilities.

For the first five months of 2023, Paradise Co has reported revenue of KRW258.45bn (US$166.5m), up 193.8 per cent year-on-year. Table revenue was up 209.8 per cent year-on-year to KRW240.68bn (US$158.2bn) while machine revenue was up 73.1 per cent to KRW17.77bn (US$12.3m).

It reported that revenue grew from KRW54.49bn (US$40.7m) to KRW70.14bn (US$53.1m) in May. That’s a rise of 30 per cent when compared to the previous month and 313.3 per cent in year-on-year terms.