US tribal gaming firm Mohegan revealed Friday it has committed to contribute up to KRW185 billion (US$142 million) in additional funding between now and 30 September 2023 to ensure completion of its Korean integrated resort project Inspire.
Confirmed by way of an Equity Commitment Letter signed on 16 February, Mohegan said the additional funding provides for “certain non-dilutive equity capital contributions” to Inspire as needed to complete the project in an amount up to KRW155 billion (US$119 million). The company has also committed up to KRW30 billion (US$23 million) more to pay for development costs or pre-opening expenses if those costs exceed budgeted amounts and available contingency funds.
Mohegan’s mezzanine lenders have been made express third-party beneficiaries of the Equity Commitment Letter and can therefore enforce such additional contribution if required.
At the same time, Mohegan has entered into a Waiver and Consent Letter with those same lenders by which the lenders much consent to certain amendments to the development plan for Inspire Korea, including changes to the fixed price construction contract to cover increases in the scope of the project and inflation cost increases.
The update comes after Mohegan revealed earlier this month that it was on track to open non-gaming offerings at Inspire Korea by the end of this year, with the casino to open in early 2024.
Mohegan Inspire is slated to include three hotel towers, an arena, a foreigner-only casino, dining, retail, convention and entertainment options, a year-round indoor water dome experience and an outdoor family park.
It will become the second integrated resort to open in Incheon after Paradise City – the latter being a joint venture partnership between Korea’s Paradise Co and Japanese gaming firm Sega Sammy Holdings.
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