RAZON-LED Bloomberry Resorts Corp. (Bloomberry) disclosed on Tuesday that it had secured a P72-billion syndicated refinancing facility from a group of banks to bolster its operations and support the ramp-up of Solaire Resort North.
In a disclosure, Bloomberry said that subsidiaries Bloomberry Resorts and Hotels, Inc. (BRHI), as borrower, and Sureste Properties Inc. (SPI), as surety and third-party security provider, signed the syndicated refinancing facility with lenders BDO Unibank, Inc., Bank of the Philippine Islands (BPI), China Banking Corp., and Philippine National Bank (PNB).
The agreement replaces a P73.5-billion syndicated term loan facility that the company obtained in 2018 and a P20-billion additional term loan facility secured in December 2020, Bloomberry said.
“The refinanced loan maintains a back-ended principal payment schedule, similar to the structure of its predecessor. More than 65 percent of the balance will come due in the last five years of the facility,” it said.
The updated loan price is 75 basis points lower than its previous refinancing facilities, with an option to fix interest rates within the next 12 months, allowing the company to benefit from potential rate cuts in the near future.
“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,” Bloomberry Chairman and CEO Enrique Razon Jr. said.
He said it would also improve the company’s bottom line and ensure the consistent return of capital to shareholders in the coming years.
BDO Capital and Investment Corp. acted as lead arranger and sole bookrunner, with BDO Unibank-Trust and Investments Group serving as security trustee, facility agent, and paying agent.
Bloomberry posted an unaudited consolidated net income of P4 billion for the first half, down 37.5 percent from P6.4 billion last year, on slower engagement among its VIP clientele and expenses incurred by Solaire Resort North, which opened last May in Quezon City.
Solaire Resort North is a $1-billion venture and the latest addition to the company’s Solaire brand. According to Razon, Solaire Resort North recorded P250 million in earnings before interest, taxes, depreciation, and amortization in its first 37 days of operations.
Bloomberry’s portfolio also includes the Jeju Sun Hotel and Casino (Jeju City) in South Korea.
On Tuesday, Bloomberry shares slipped 7 centavos, or 0.88 percent, to P7.89 apiece.
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