Bloomberry Resorts Corporation has successfully completed the refinancing of a PHP72 billion ($1.24 billion) loan, in a deal aimed at helping lighten its debt burden as Solaire Resort North ramps up.
The agreement, announced during a signing ceremony at Solaire Resort Entertainment City, involves Bloomberry’s subsidiaries – Bloomberry Resorts and Hotels, Inc. (BRHI) as the borrower, and Sureste Properties Inc. (SPI) serving as surety and third-party security provider.
This new Syndicated Refinancing Facility replaces the previous PHP73.5 billion ($1.27 billion) Syndicated Term Loan Facility acquired in 2018, along with an additional PHP20 billion ($345.5 million) term loan obtained by BRHI in December 2020.
The new facility has a term of 10 years, extending until October 2034, and retains a back-ended principal payment schedule similar to its predecessor, with over 65 percent of the balance due in the final five years.
Notably, the updated loan comes with a pricing spread that is 75 basis points lower than the previous facilities and allows Bloomberry the option to fix the interest rate within the next 12 months. This flexibility positions the company to benefit from anticipated interest rate cuts in the near future.
Enrique K. Razon Jr., Bloomberry’s Chairman and CEO, expressed optimism about the refinancing, stating that the group views 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.
According to Razon, the refinancing will also “improve the company’s bottom line, and ultimately ensure the consistent return of capital to our shareholders in the coming years”.
The syndicate of lenders includes prominent financial institutions such as BDO Unibank, Inc., Bank of the Philippine Islands, China Banking Corporation, and Philippine National Bank.
BDO Capital and Investment Corporation acted as the lead arranger and sole bookrunner, while BDO Unibank, Inc. – Trust and Investments Group serves as the security trustee, facility agent, and paying agent.
The company continues to ramp up its $1 billion Solaire Resort North property in Quezon City, which opened in late May of this year – the first five-star integrated resort in the region. The new property in its portfolio boasts 13,000 square meters of mass and VIP gaming across four floors and 526 hotel rooms.
In the group’s 2Q24 financial results, the group’s Chairman and CEO indicated he was “happy with the pace” of the ramp up of Solaire Resort North, which achieved positive EBITDA of PHP250 million ($4.32 million) in its first 37 days of operation. During the period it recorded PHP1.1 billion ($19.64 million) in gross gaming revenue (only from mass table games and EGMs) and non-gaming revenue of PHP213 million ($3.68 million).
