Philippines-based casino operator Bloomberry Resorts Corp announced on Tuesday that it secured a PHP72.0-billion (US$1.25 billion) syndicated refinancing agreement with a consortium of banks.
In its disclosure to the Philippine Stock Exchange, Bloomberry explained that its subsidiaries, Bloomberry Resorts and Hotels Inc, acted as the borrower. Meanwhile, Sureste Properties Inc provided third-party security and served as the surety. BDO Capital and Investment Corp led the transaction and acted as the sole bookrunner.
This new financing replaces Bloomberry’s PHP73.5-billion syndicated loan from 2018. It also takes the place of a separate PHP20-billion term loan secured in 2020. Notably, the updated facility spans a 10-year term, with maturity set for October 2034.
Bloomberry pointed out that the new loan mirrors the structure of its previous loans. Over 65% of the principal payments will fall due during the final five years of the term. Additionally, the new agreement offers a 75 basis point reduction in pricing compared to the older facilities. It also includes a one-year window to lock in the interest rate, which could prove beneficial if market rates decline.
Chairman and CEO Enrique Razon described the refinancing deal as a major step forward for the company. He emphasized that the new facility will help reduce Bloomberry’s debt burden while preserving cash flow. This strategy becomes increasingly important as the company ramps up operations at Solaire Resort North.
Razon added that this move will further strengthen Bloomberry’s financial position. Moreover, it ensures the company can continue delivering consistent returns to its shareholders.
Bloomberry currently operates Solaire Resort & Casino in Manila. Earlier this year, the company officially opened its second integrated resort, Solaire Resort North, located in Quezon City.
In a statement from April, Razon mentioned that Bloomberry remains focused on expanding Solaire Resort North. Only after completing this priority project will the company move forward with its other developments. These include Phase 2 of Solaire Resort & Casino and a planned new project in Cavite.
