Caesars Entertainment Corporation says it has capped the amount of additional cash it is willing to directly invest into its planned Caesars Korea integrated resort in Incheon at US$60 million as it looks to secure final financing to proceed with the development.
Providing a brief update on Korea during the company’s 2Q19 earnings call on Tuesday, CFO Eric Hession said Caesars had already contributed US$80 million to the US$700 million project but added, “Our maximum future contribution to the project is US$60 million and that would be the amount of the cash out from our balance sheet that we would contemplate in the entirety of the project.”
While IAG understands Caesars has been in discussions with both Korean and international lenders for the final slice of financing required, there is still no firm guarantee that the project will go ahead, with Hession having commented earlier this year, “We have to get agreements and have the project come on budget, so there’s always risk associated with any project of that type.”
Assuming it does, there will likely be at least some delay to the Incheon development while Caesars attends to more pressing matters back home – most notably its impending US$17.6 billion merger with Eldorado Resorts.
“Certainly, the first month and a half (since the deal was announced) we’ve been focused on the merger and then our properties and our business here in the US and that’s going to be a focus of our attention over the next month or two,” CEO Tony Rodio said on Tuesday in response to questions over the progress of Caesars Korea.