Uncasville, Connecticut, February 18, 2025 – Mohegan Tribal Gaming Authority (“Mohegan,” “we” or “our”) confirmed that it received notices that Bain Capital, the principal lender to MGE Korea Limited, the parent company of the Mohegan INSPIRE Entertainment Resort in South Korea (“Inspire”), has accelerated the MGE Korea Limited mezzanine loan and taken control of Inspire.
Inspire is a groundbreaking integrated destination that is quickly establishing itself as a premier resort in Asia after its opening in February 2024. Despite near-term hurdles that are common in new resorts of this scale, Mohegan believes we put the essential components in place for long-term success and the property needs more time to achieve its full potential.
While Mohegan did not satisfy certain financial covenant tests, we have not missed a payment of principal or interest. Specifically, the loan held by Bain Capital does not mature until May 2027, with no principal payments due before the maturity date. We made several good faith proposals for amending the financial covenants that are consistent with market precedents. However, Bain Capital has dismissed those proposals and provided counterproposals that would result in Bain Capital receiving large payments ahead of other Inspire lenders.
Mohegan made commitments to many stakeholders, including the Mohegan people and the people of the Republic of Korea, thousands of whom relied on us for jobs and other economic and social benefits this resort brings to local communities. One of the principal reasons Mohegan was invited to South Korea as a casino license holder in 2016 was our family-owned approach and foundational commitment to regulatory compliance, public safety and community engagement. Since developing and launching Inspire, we have applied our extensive operational experience in the gaming industry, including providing Inspire with essential services in the areas of compliance, finance, technology, human resources and marketing. We were committed to the long-term success of Inspire and to the continued expansion of the Incheon site.
We have been and will continue to attempt to negotiate in good faith with Bain Capital to find a mutually agreeable solution that allows us to be continuing partners with the people of Korea and our various stakeholders. We do not believe the change-of-control pursued by Bain Capital is in the best interests of the property, its team members and customers, other lenders and various key stakeholders.
About Mohegan
Mohegan is the owner, developer, and manager of premier entertainment resorts in the United States, Canada, and Northern Asia. Mohegan’s U.S. operations include resorts in Connecticut, Pennsylvania, and Nevada; Canadian operations are based in Niagara Falls, Ontario; and Mohegan INSPIRE is located in Incheon, South Korea. The brand’s iGaming division, Mohegan Digital, provides cutting-edge online gaming solutions to Mohegan’s loyal fan base and meets the digital needs of North American customers. Mohegan is owner and operator of Connecticut Sun, a professional basketball team in the WNBA. For more information on Mohegan and its properties, please visit www.mohegangaming.com.
Cautionary Statements Regarding Forward-Looking Information
Some information included within this press release contains forward-looking statements. Such statements may include information relating to business development activities, as well as capital spending, financing sources, the effects of regulation, including gaming and tax regulation, and increased competition. These statements can sometimes be identified by our use of forward-looking words such as “may,” “will,” “anticipate,” “estimate,” “expect” or “intend” and similar expressions. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated future results and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by us or on our behalf. The forward-looking statements included within this press release are made only as of the date of this press release. We do not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. We cannot assure you that projected results or events will be achieved or will occur.
Contact:
Joffre Wells
Mohegan
VP Capital Markets, Investor Relations & Corporate Treasurer
(860) 862-9135