Philippines-based casino operator Bloomberry Resorts Corp announced on Tuesday that it has secured a PHP72.0-billion (US$1.25 billion) syndicated refinancing agreement with a consortium of banks.
In a statement to the Philippine Stock Exchange, Bloomberry detailed that its subsidiaries, Bloomberry Resorts and Hotels Inc, acted as the borrower, with Sureste Properties Inc providing third-party security and acting as the surety. BDO Capital and Investment Corp led the arrangement of the deal and served as the sole bookrunner.
The new financing replaces Bloomberry’s existing PHP73.5-billion syndicated loan from 2018 and a PHP20-billion term loan obtained in 2020. This updated facility spans a 10-year term, maturing in October 2034.
Bloomberry emphasized that the new loan mirrors the structure of its predecessor, with over 65% of the principal payments due in the final five years. Additionally, it offers a 75 basis point reduction in pricing compared to the previous loans and includes the option to fix the interest rate within the next year, which could provide further benefits should interest rates decrease.
Bloomberry’s chairman and CEO, Enrique Razon, highlighted the deal as a positive step that will help the company reduce its debt burden and preserve cash, particularly as its new Solaire Resort North begins ramping up operations. Razon added that the refinancing will improve the company’s financial position and ensure consistent returns to shareholders.
Bloomberry operates the Solaire Resort & Casino in Manila and opened its latest gaming complex, Solaire Resort North, in Quezon City earlier this year. Razon mentioned in April that the company’s focus remains on expanding Solaire Resort North before moving forward with other projects, such as Phase 2 of Solaire Resort & Casino and a development in Cavite.