P72-B refinancing facility secured for Bloomberry Resorts and Hotels Inc.

Razon-led Bloomberry Resorts Corp. has secured a P72-billion Syndicated Refinancing Facility for its subsidiary, Bloomberry Resorts and Hotels Inc. (BRHI), with Sureste Properties Inc. (SPI) as surety.

In a stock exchange filing on Tuesday, Bloomberry said the new loan, signed at Solaire Resort, replaces a P73.5-billion term loan from 2018 and a P20-billion loan from December 2020.

"This refinancing will help lighten our debt service and preserve cash as Solaire Resort North ramps up," Bloomberry chairman and CEO Enrique K. Razon Jr. said.

Bottom line improved

"It will also improve our bottom line and ensure consistent returns to shareholders."

The 10-year refinancing, set to mature in October 2034, features a back-ended repayment schedule, with more than 65 percent of the balance due in the last five years.

The new loan carries an interest rate 75 basis points lower than the previous facilities and includes an option to fix the rate within the next 12 months, allowing the company to benefit from potential rate cuts.

Lenders include BDO Unibank Inc., Bank of the Philippine Islands, China Banking Corp. and Philippine National Bank.

BDO Capital and Investment Corp. served as lead arranger, with BDO Unibank’s Trust and Investments Group acting as facility agent and paying agent.

P4-billion consolidated net income

In the first half of 2024, Bloomberry posted a P4-billion consolidated net income, down 37.5 percent from P6.4 billion a year ago due to lower gaming revenues and pre-operating expenses linked to its new Solaire North project.

Consolidated net revenues fell by 3 percent to P24.8 billion, while EBITDA dropped 23.21 percent to P8.6 billion from P11.2 billion last year.

Despite the lower numbers, Razon noted that additional synergies and favorable operating leverage from Solaire North are expected to drive profitability in the coming quarters.