The Mohegan Tribal Gaming Authority has completed a sweeping $1.2 billion financial restructuring, enhancing its capital structure after relinquishing operational control of Korea’s $1.6 billion INSPIRE Entertainment Resort earlier this year.
On April 24th, Mohegan and subsidiary MS Digital Entertainment Holdings, LLC assumed responsibility for $1.2 billion in secured notes, including $750 million in first priority senior secured notes due 2030 and $450 million in second priority notes due 2031. Additionally, Mohegan secured a new five-year, $250 million senior secured revolving credit facility.
The proceeds and new borrowing refinanced its 8% secured notes due 2026 and cleared prior revolver obligations. A $226 million private exchange of 13.25% unsecured notes due 2027 was completed for $250 million in new 2031 notes, with another $90 million exchanged into notes maturing in 2029.
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The Mohegan Tribe further strengthened the company’s debt profile by acquiring and rolling $100 million into new notes due 2032.
Despite losing INSPIRE’s control after defaulting on a $275 million term loan, the resort reported $63.5 million in Q4 2024 revenue. With no major debt maturities for the next four years, Mohegan aims to improve borrowing costs and reduce leverage.
This move signals Mohegan’s renewed focus on long-term financial resilience and investor confidence.
