RAZON-LED Bloomberry Resorts Corp. has refinanced a P72-billion loan to enhance financial stability and preserve cash.
Bloomberry subsidiaries Bloomberry Resorts and Hotels, Inc. (BRHI), as borrower, and Sureste Properties, Inc. (SPI), as surety and third-party security provider, signed a P72-billion syndicated refinancing facility with a group of banks on Tuesday, the listed integrated resort operator said in an e-mailed statement.
The new loan facility replaces the existing P73.5-billion syndicated term loan facility obtained in 2018 and the P20-billion additional term loan facility that BRHI obtained in December 2020.
“We view this refinancing as a positive development that will allow the company to lighten its debt service and preserve cash as Solaire Resort North ramps up, improve the company’s bottom line, and ultimately ensure the consistent return of capital to our shareholders in the coming years,” Bloomberry Chairman and Chief Executive Officer Enrique K. Razon, Jr. said.
Bloomberry’s updated loan is priced at a spread that is 75 basis points lower than the previous facilities and gives the option to fix the interest rate within the next 12 months.
The feature will allow the company to benefit from further interest rate cuts that are expected to be implemented in the coming months.
The banks involved in the refinancing loan include BDO Unibank, Inc., Bank of the Philippine Islands, China Banking Corp., and Philippine National Bank.
BDO Capital served as lead arranger and sole bookrunner, while BDO Unibank, Inc. – Trust and Investments Group is the security trustee, facility agent, and paying agent.
Bloomberry’s integrated resort portfolio includes Solaire Resort Entertainment City, Solaire Resort North in Quezon City, and Jeju Sun Hotel & Casino (Jeju City) in Korea.
On Tuesday, Bloomberry shares fell by 0.88% or seven centavos to P7.89 apiece. — Revin Mikhael D. Ochave