Okada Manila operator signs up for $400-m loan
The operator of Okada Manila plans to borrow $400 million from Sy family-led China Banking Corp. to refinance another loan due in December, potentially avoiding a default.
In a filing at the Tokyo Stock Exchange, Universal Entertainment Corp. said that Tiger Resort Leisure and Entertainment Inc. (TRLEI) signed a loan agreement with Chinabank on Friday.
TRLEI intends to secure the loan by Aug. 1, which will allow the gaming company to repay early an existing debt with a principal amount of $760 million and due in December.
The interest rate of the planned loan from Chinabank, which will mature in seven years, will either be at 6.75 percent or the benchmark rate plus 1.75 percent—whichever is higher—and will be repriced quarterly, according to TRLEI.
Earlier this month, TRLEI terminated its deal with PH Travel and Leisure Holdings Corp., led by Davao-based businessman Dennis Uy, to buy the $300-million Emerald Bay project in Cebu province.
Universal Entertainment announced plans to acquire the long-stalled project through TRLEI in December.
The deal would have allowed TRLEI to acquire a majority ownership stake in PH Travel subsidiaries LapuLapu Leisure Inc. and LapuLapu Land Corp., operators of the Mactan casino project that began construction in 2017.
TRLEI is the third investor to drop out after Cebu-based developer AppleOne Properties Inc. and tycoon Enrique Razon Jr.-led Bloomberry Resorts Corp. both backed out last year.
Although PH Resorts claimed that other companies have expressed “keen interest” in the project, analysts also pointed out that it would be difficult for the company to find a white knight unless it lowers its asking price. INQ
