Publicly listed Leisure & Resorts World Corp. (LR) is beefing up its capital for the expansion of its businesses in the country.
In a disclosure, the company said its board had approved the expansion of its authorized capital to P5 billion from P1.6 billion, divided into 2.5 billion common shares at P1 each and 2.5 billion non-voting preferred shares, also at P1 each.
LR also said it would offer P1.75 billion in preferred shares at a dividend rate of 8.5 percent through private placements involving 19 different investors.
“On the fifth anniversary of the issue date or on any dividend payment date thereafter, the company has the option, but not the obligation, to redeem the perpetual preferred shares … at a redemption price equal to the issue price,” LR told the local bourse.
In the disclosure, LR said the proceeds from the preferred shares issuance would be used to finance the expansion of various operations. These include the acquisition of additional bingo sites, the Belle Grande Integrated Resort and Casino, Techzone project, and the Midas Hotel project.
LR said the firm’s president, Reynaldo Bantug, was given the authority to sign and negotiate the terms and conditions of the definitive agreement among Belle Corp., Premium Leisure and Amusement Inc. and AB Leisure Global Inc. in relation to the company’s involvement in Belle Grande casino.
Belle Corp. and LR were the original partners for Belle Grande casino. Both firms, however, agreed to take in Melco Crown Entertainment Ltd. as the casino’s new operator.—Paolo G. Montecillo