The Mohegan Tribal Gaming Authority released an update on its in-development South Korean resort. Inspire Integrated Resort, which will see its parent company expand internationally, will receive further financial backing needed for its completion.
As announced, on February 16 Mohegan executed an Equity Commitment Letter and agreed to make certain non-dilutive equity capital contributions to Inspire. In short, the tribal company will provide the project with additional funding, which will be crucial to turning Inspire into a reality.
Mohegan will provide Inspire with the US dollar equivalent of 155 billion Korean won (around $118.5 million, current conversion rates). Inspire will receive the sum in several payments before September 30 this year.
In addition to the capital provided for the completion of Inspire, Mohegan also agreed to make further non-dilutive equity capital contributions if necessary to cover certain development costs or pre-opening expenses if they exceed budgeted amounts in an amount of up to KRW 30 billion.
The announcement added that Mohegan’s mezzanine lenders have become express third-party beneficiaries of the Equity Commitment Letter and can enforce additional contributions. The lenders also entered into a Waiver and Consent Letter where they agreed to certain amendments to the development plan for Inspire. These include amendments to the fixed-price construction contract, changes to the scope of the project and inflation cost increases.
About Inspire Integrated Resort
Mohegan’s Inspire Integrated Resort is a huge casino resort project that is expected to launch in late 2023. If everything goes according to plan, by early 2024, the casino will also welcome its first visitors.
Inspire will be a first-of-its-kind, $5 billion resort that will feature a unique three-tower luxury hotel. It will be packed with casino, hospitality, dining and entertainment facilities. Inspire will have the biggest entertainment area in South Korea and will feature a convention center, a shopping district and numerous restaurants.
The project is close to the Incheon International Airport on Yeongjong Island, making it an easily-accessible destination for foreign tourists. This is very important, considering that the casino will only be open to foreigners.
Prior to its South Korean Project, Mohegan was primarily focused on the NA region, like most tribal entities. However, the company’s ambitions go beyond North America and its casino resorts in Connecticut, Washington, Pennsylvania, New Jersey and Nevada.