South Korea’s Paradise Co. said Tuesday its board has approved a plan to provide collateral worth KRW120 billion ($87 million) to secure a KRW100 billion ($73 million) loan taken out by its subsidiary Paradise SegaSammy Co.
The collateral, consisting of 49.6 million shares of Paradise SegaSammy held by the parent company, will be pledged to a consortium of lenders including Hana Bank, Woori Bank, Kyongnam Bank, IM Bank and Kwangju Bank, the casino operator said in a regulatory filing.
The loan, scheduled for drawdown in early December, will have a collateralization ratio of 120 percent and a one-year term from the date of the first withdrawal, the company said.
Paradise added that the collateral value represents about 5.8 percent of its equity capital of KRW2.08 trillion ($1.5 billion) as of the end of 2024. Including the latest pledge, the total value of collateral provided by the group amounts to roughly KRW759 billion ($551 million).
Paradise SegaSammy, which operates the Paradise City integrated resort near Incheon International Airport in partnership with Japan’s Sega Sammy Holdings, reported a net profit of KRW72.3 billion ($52 million) in 2024 on sales of KRW539.3 billion ($392 million), up sharply from a KRW28.1 billion ($20 million) profit a year earlier.
The company said the details of the loan and collateral arrangement are subject to change once the exact drawdown date is confirmed.
