South Korea’s Paradise Co said in a Friday filing that it has refinanced KRW500 billion (US$395 million) in loans taken out in 2018 for Phase 1 and Phase 2 developments of its Incheon integrated resort, Paradise City.
According to details outlined in the filing, the KRW500 billion refinanced loan takes effect as of 19 June 2023 and has a maturity date of 19 June 2028. The company, which initially took out a KRW800 billion (US$632 million) loan in October 2018, is also refinancing KRW30 billion (US$23.7 million) in working capital, to mature on 19 June 2024.
Paradise Co’s 49,576,129 shares in Paradise SegaSammy Co Ltd – the entity that owns and operates Paradise City – have been used as collateral for the KRW530 billion (US$419 million) in refinancing, it added.
Paradise Co holds a 55% interest in Paradise SegaSammy Co Ltd, with the other 45% held by Japan’s Sega Sammy Holdings Inc.
The operator of four foreigner-only casinos in South Korea – the others being located in Seoul, Busan and Jeju – Paradise Co said in a previous filing that it had returned to profit in 1Q23, with its KRW9.45 billion (US$7.2 million) profit reversing a KRW36.0 billion (US$27.3 million) loss in 1Q22 and a KRW1.62 billion (US$1.2 million) loss in 4Q22.
The company explained that the improvement was due to the easing of COVID-19 restrictions throughout 2022, which saw Japanese VIPs begin returning last July while visa-free entry from Japan resumed in October.
