Bloomberry gets cheaper, longer P72-B loan deal

Listed Bloomberry Resorts Corp., the operator of Solaire Resorts and Casino, has obtained a P72-billion loan from four local banks to repay an existing debt as it works to improve its bottom line and ramp up operations at its newest entertainment project.

In a stock exchange filing on Tuesday, the company led by billionaire Enrique Razon Jr. said the syndicated refinancing facility would replace the P73.5-billion and P20-billion loan packages that subsidiary Bloomberry Resorts and Hotels Inc. (BRHI) had received in 2018 and 2020, respectively.

BRHI and Sureste Properties Inc., as the surety and third-party security provider, signed the loan agreement with a syndicate of lenders composed of Sy family-led BDO Unibank Inc. and China Banking Corp.; Ayala-led Bank of the Philippine Islands; and taipan Lucio Tan-led Philippine National Bank.

BDO Capital and Investment Corp. served as the lead arranger and sole bookrunner while BDO Unibank Inc.-Trust and Investments Group was the security trustee, facility agent and paying agent.

“We view 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, improve the company’s bottom line, and ultimately ensure the consistent return of capital to our shareholders in the coming years,” Bloomberry chair and CEO Razon said in a statement.

According to Bloomberry, the loan will be payable in 10 years, or until October 2034. It will have a back-ended payment schedule, meaning most of the amount, or 65 percent, will be due in the last five years of the facility.

The loan is priced at 75 basis points lower than the previous facilities, Bloomberry said, allowing the company to pay less interest.

In the first half of the year, Bloomberry booked lower earnings due to higher costs from the opening of the $1-billion Solaire North.

Consolidated net income in the January to June period dropped by 37.5 percent to P4 billion, while revenues dipped by 3 percent to P24.8 billion.

Preoperating expenses at Solaire North, which opened on May 25, totaled P764.1 million.