The US-based operator has secured a “significant” refinancing deal, allowing it to postpone debt repayments until 2029 after facing setbacks in South Korea.
In a news release last Thursday, the Mohegan Tribal Gaming Authority and its subsidiary, MS Digital Entertainment Holdings, confirmed the completion of a $1.2 billion refinancing package. The deal includes a new, expanded $250 million revolving credit facility, the exchange of $226 million in unsecured notes due in 2027 for secured notes maturing in 2031, and an agreement to extend part of the remaining 2027 unsecured notes to 2029.
In a separate transaction, the Mohegan tribe purchased $100 million worth of 2027 unsecured notes and extended their maturity to 2032.
The refinancing package was finalized about 60 days after Mohegan faced a liquidity crisis that led to the loss of control over Inspire South Korea. Located near Incheon International Airport, the integrated resort (IR) marked Mohegan’s first venture into Asia’s competitive gaming market when it launched in March 2024.
Featuring three five-star hotel towers, a 15,000-seat concert venue, extensive conference space, an indoor water park, and a casino exclusively for foreigners, Inspire quickly earned the nickname “the Las Vegas of South Korea.” However, the ambitious project nearly brought Mohegan to financial collapse.
Change of command in South Korea
In fiscal year 2024, Mohegan reported record revenues of $1.9 billion but also recorded a net loss of $235 million. In January, the company warned of a looming debt covenant breach that threatened its ability to continue operating. It blamed the financial shortfall on high startup costs in South Korea and weak table game performance at the Inspire casino.
Facing $275 million in outstanding debt payments, the Uncasville, Connecticut-based operator sought to revise its loan terms to reflect market norms. However, lead lender Bain Capital rejected the proposal.
The Boston-based investment firm instead triggered an acceleration clause, demanding immediate repayment or the surrender of Inspire. On February 19, Bain exercised its right to seize control of the integrated resort on Yeongjong Island.
Bain reassured stakeholders that the leadership change would not affect day-to-day operations for staff or guests. Inspire president Chen Si echoed that message, pledging “business as usual” under a confident new management team.
A clean slate for Mohegan
With no major debt repayments due until 2029, Mohegan now has the opportunity to “reduce leverage, lower borrowing costs, and enhance strategic flexibility,” said chief financial officer Ari Glazer.
Tribal chairman James Gessner Jr described the refinancing as “a strong reflection of our continued dedication to Mohegan’s long-term success.”
He added that the extended debt timeline and improved financial position “reinforce our alignment with investors as we reinvest capital into the business.”
