Mohegan Gaming finalizes financing for South Korea project
Mohegan — Mohegan Gaming & Entertainment announced Monday the completion of financing for the $1.55 billion first phase of Inspire, the integrated casino resort it’s developing on Yeongjong Island in Incheon, South Korea.
MGE, the Uncasville-based corporation that owns the Mohegan Tribe’s gaming enterprises, including Mohegan Sun, said Inspire is set to open to international travelers in 2023.
Inspire's first phase will include three hotel towers, a 15,000-seat arena, a foreigners-only casino, a convention facility, retail offerings, a year-round indoor water dome and an outdoor thematic space dubbed "Family Park."
“We have a proven track record in developing and operating leading integrated entertainment resorts in North America with our successes in Connecticut, Las Vegas and Niagara Falls, and we look forward to taking this success abroad as the first American IR (integrated resort) launched in Korea," James Gessner Jr., chairman of both the tribe and the MGE Management Board, said in a statement.
Inspire Integrated Resort Co. Ltd., MGE's wholly owned Korean subsidiary, now has in place the funding needed to complete construction of the project.
MGE has committed $575 million, combining its own $300 million investment and $275 million raised through global private equity firms Bain Capital and MBK Partners. In addition, a consortium of three Korean banks and other financial institutions are providing a loan of about $890 million, and the general contractor, Hanwha Engineering & Construction Corp. has provided a completion guarantee as well as a subordinated investment of about $85.5 million.
“We anticipate a significant rebound in the tourism and leisure industry following the pandemic, and we look forward to contributing to the Korean economy while at the same time opening and operating a successful, state-of-the-art resort," Bobby Soper, MGE’s international president, said.