Bloombery secures P 20B more to fix Solaire, fund capex
Razon group-led integrated gaming resort operator Bloomberry Resorts Corp. has raised an additional P20 billion from an existing club loan to spruce up flagship Solaire Resort & Casino and cover other working capital outlays.
In a disclosure to the Philippine Stock Exchange on Tuesday, Bloomberry said its subsidiary, Bloomberry Resorts and Hotels Inc. (BRHI), recently signed with a syndicate of banks an amendment to the P73.5-billion omnibus loan and security agreement for an additional facility in the principal amount of P20 billion.
The credit facility was oversubscribed, the disclosure read.
“Securing an additional funding option during this difficult time is a landmark achievement for our company and a resounding vote of confidence by our lenders,” said Bloomberry chair and chief executive officer Enrique Razon Jr.
The additional facility would be available for two years from the signing of the amendment agreement. The additional funding, if drawn, would be used to support the cash flow requirements of Solaire, partially finance capital expenditures for the improvement and refurbishment of existing facilities there, and partially finance BRHI’s working capital requirements. The additional funding, if drawn, would be used to support the cash flow requirements of Solaire, partially finance capital expenditures for the improvement and refurbishment of existing facilities there, and partially finance BRHI’s working capital requirements and other general corporate purposes, the disclosure said.
Interest payments would be based on a floating rate, calculated on a quarterly basis.
“BRHI intends to draw only the amount that it requires for the purposes it has stated to minimize additional interest expenses,” Razon added.
Banks participating in the additional facility is composed of BDO Unibank Inc., China Banking Corp., Philippine National Bank, Robinsons Bank Corp., and United Coconut Planters Bank, all of which participated in the original P73.5-billion loan.
BDO Capital and Investment Corp. served as lead arranger and sole bookrunner while BDO Unibank-Trust and Investments Group was assigned as security trustee, facility agent and paying agent. —Doris Dumlao-Abadilla INQ