Bloomberry secures P40-B loan deal
Bloomberry Resorts Corp. has obtained a P40-billion loan from seven local banks to repay an existing debt and improve its cash flow amid the high costs it incurred from opening its newest entertainment project.
In a stock exchange filing on Wednesday, the operator of Solaire Resorts and Casino led by billionaire Enrique Razon Jr. said the syndicated loan facility was meant to refinance the P40 billion it had borrowed in 2019. The amount was used to partially fund the construction of Solaire Resort North in Quezon City.
According to Bloomberry, the new facility carries a term of 10 years, with an interest margin that is 75 basis points lower than the original one.
The payment schedule likewise allows Bloomberry to make smaller payments in the first seven years of the loan term, while “heavier payments” will be made in the last three years.
“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 in its disclosure.
Razon, chair and CEO of Bloomberry, added: “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.”
The syndicate of lenders include BDO Unibank Inc., Bank of Commerce, Bank of the Philippine Islands, China Banking Corp., Metropolitan Bank and Trust Co., Philippine National Bank and Union Bank of the Philippines.
Meanwhile, BDO Capital and Investment Corp. was the lead arranger and sole bookrunner. BDO Unibank Inc.-Trust and Investments Group is the security trustee, facility agent and paying agent, Bloomberry said.
This comes as Bloomberry grapples with high costs and interest expenses at Solaire North, resulting in its net income sliding by 58 percent to P3.5 billion in the first nine months of 2024.
