1 month ago
6
Richmond Mercurio - The Philippine Star
February 13, 2025 | 12:00am
MANILA, Philippines — Bloomberry Resorts Corp. of tycoon Enrique Razon Jr. has secured a P40-billion syndicated refinancing facility with a group of local banks.
The facility will refinance the existing P40 billion syndicated term loan facility obtained by borrowers Bloomberry Resorts and Hotels Inc. and Sureste Properties Inc. in February 2019 to partially finance the construction of Solaire Resort North.
Bloomberry said the deal is the second refinancing exercise successfully completed by the company in the last four months.
“Our recent refinancing activities optimize our cash flow by reducing annual interest and principal payments,” Razon, Bloomberry chairman and CEO, said.
“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,” he said.
The syndicate of lenders includes 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.
BDO Capital & Investment Corp. 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 said the key features of the P40 billion syndicated refinancing facility are similar to the P72 billion facility obtained in October last year.
It said the new facility carries a term of 10 years or until February 2035, while the principal payment schedule is structured such that heavier payments are made in the last three years of the facility.
The loan’s interest margin is 75 basis points lower than the original facility and gives the borrowers the opportunity to fix the interest rate in 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.
Bloomberry is the owner and operator of the Solaire Resort Entertainment City, Solaire Resort North and Jeju Sun Hotel & Casino,
