US tribal casino operator Mohegan, which is currently developing Mohegan INSPIRE Entertainment Resort in Incheon, South Korea, said Wednesday (Asia time) that it has entered into a second amendment to a previous credit agreement providing it with more time to access and repay certain loans.
According to a short statement, the second amendment to the original credit agreement signed in January 2021 – the first amendment was agreed in May 2022 – will see “certain lenders” agree to extend the maturity date of their commitments and loans under the facility until 1 November 2025 as well as making certain other amendments to the terms of the Existing Credit Agreement.
These include modifying financial covenants to provide for one 0.25x step-down to the maximum senior secured leverage ratio beginning with the fiscal quarter ending 31 December 2024, and two 0.25x step-downs to the maximum total leverage ratio beginning with the fiscal quarters ending 30 September 2024 and 30 June 2025, Mohegan said.
The company added that, following the second credit agreement amendment, its outstanding commitments currently stand at US$233.5 million with a maturity date of 1 November 2025.
Mohegan’s credit update come after it revealed last week plans to make additional equity investments into INSPIRE Korea.
“A significant area of focus is expansion of hotel rooms, convention and meeting rooms plus F&B capacity,” said Mohegan CEO Ray Pineault during the company’s 4Q22 earnings call.
“There has been a strong trend in the Korean local market for staycations and we also want to make sure that our non-gaming amenities are sufficient to capture strong market share and support other programming for the resort, including the arena.”
Mohegan also revealed during the call that INPSIRE Korea is running slightly ahead of schedule, with non-gaming offerings due to open later this year and the casino soon after.
