Bloomberry secures P72.0 billion refinancing deal to boost financial flexibility
Photo courtesy of Bloomberry Resorts Corporation.
In a key financial move, Bloomberry Resorts Corporation (Bloomberry), through its subsidiaries Bloomberry Resorts and Hotels, Inc. (BRHI) and Sureste Properties Inc. (SPI), successfully signed a P72.0 billion Syndicated Refinancing Facility with a consortium of banks. This new facility replaces the P73.5 billion loan from 2018 and the P20 billion term loan secured in 2020, offering more favorable terms for Bloomberry’s financial strategy as Solaire Resort North scales up.
In a signing ceremony held at Solaire Resort Entertainment City, Bloomberry Resorts Corporation (Bloomberry) subsidiaries Bloomberry Resorts and Hotels, Inc. (BRHI), as borrower, and Sureste Properties Inc. (SPI), as surety and 3rd party security provider, signed with a group of banks the P72.0 billion Syndicated Refinancing Facility. The new facility replaces the existing P73.5 billion Syndicated Term Loan Facility obtained in 2018 and the P20 billion additional term loan facility that BRHI obtained in December 2020.
The 10-year refinancing, which extends until October 2034, features a back-ended payment schedule, with over 65% of the balance due in the final five years. The loan is also priced at a spread 75 basis points lower than previous arrangements, with an option to lock in rates within 12 months, allowing Bloomberry to capitalize on potential interest rate reductions in the near future.
Enrique K. Razon Jr., Bloomberry Chairman and CEO, commented, ”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.”
The syndicate of lenders include BDO Unibank, Inc., Bank of the Philippine Islands, China Banking Corporation, and Philippine National Bank. BDO Capital and Investment Corporation served as lead arranger and sole bookrunner while BDO Unibank, Inc. – Trust and Investments Group is the security trustee, facility agent, and paying agent.