BLOOMBERRY RESORTS Corp. said it has refinanced a P40-billion loan used to partially fund the construction of Solaire Resort North, its integrated resort in Quezon City.
The company, through subsidiaries Bloomberry Resorts and Hotels, Inc. (BRHI) and Sureste Properties, Inc. (SPI) as borrowers, signed a P40-billion syndicated refinancing facility with various banks, Bloomberry said in a regulatory filing on Wednesday.
“Our recent refinancing activities optimize our cash flow by reducing annual interest and principal payments. The timely refinancing of our P40-billion facility demonstrates our proactive financial management stance and our commitment to provide a consistent return of capital to our shareholders,” Bloomberry Chairman and Chief Executive Officer Enrique K. Razon, Jr. said.
Bloomberry said the P40-billion syndicated refinancing facility has similar key features to the P72-billion facility signed in October last year.
The P40-billion refinancing facility has a 10-year term, maturing in February 2035, with principal payments structured so that heavier payments are made in the last three years of the facility.
The interest margin on the loan is 75 basis points lower than the original facility, allowing the borrowers to fix the interest rate over the next 12 months.
“These features will lighten debt service requirements over the coming years and allow Bloomberry to benefit from anticipated interest rate cuts in the next months,” the company said.
The P40-billion syndicated refinancing facility involved BDO Unibank, Inc., Bank of Commerce, Bank of the Philippine Islands, China Banking Corp., Metropolitan Bank & Trust Co., Philippine National Bank, and Union Bank of the Philippines.
BDO Capital & Investment Corp. served as the lead arranger and sole bookrunner, while BDO Unibank, Inc. – Trust and Investments Group acted as the security trustee, facility agent, and paying agent.
Aside from Solaire Resort North, Bloomberry’s integrated resort portfolio includes Solaire Resort Entertainment City in Parañaque City and Jeju Sun Hotel & Casino in Jeju City, South Korea.
Bloomberry shares fell by 2.12% or eight centavos to P3.70 apiece on Wednesday. — Revin Mikhael D. Ochave
