Bloomberry refinances P40B for Solaire North
‘Our recent refinancing activities optimize our cash flow by reducing annual interest and principal payments’
Bloomberry Resorts Corp., the Razon-led operator of Solaire Resort and Casino, has refinanced a P40-billion loan originally secured in 2019 to help fund the construction of Solaire Resort North shown above.
Photograph courtesy of Bloomberry Resorts Corp.
Bloomberry Resorts Corp., the Razon-led operator of Solaire Resort & Casino, has refinanced a P40-billion loan originally secured in 2019 to help fund the construction of Solaire Resort North.
The listed company informed the local bourse on Wednesday that its subsidiaries, Bloomberry Resorts and Hotels Inc. and Sureste Properties Inc., signed the refinancing deal with a syndicate of banks in a ceremony at Solaire Resort Entertainment City.
“Our recent refinancing activities optimize our cash flow by reducing annual interest and principal payments,” Bloomberry chairperson and CEO Enrique K. Razon Jr. said.
“The timely refinancing of our P40 billion facility demonstrates our proactive financial management stance and our commitment to provide a consistent return of capital to our shareholders.”
The new facility, structured as the Sixth Amendment to the original loan, extends the maturity to 2035 and offers better terms, including a 75-basis-point reduction in interest margin and a flexible rate-fixing option within the next 12 months.
Debt pressure eases
Bloomberry said the refinancing eases debt service obligations in the near term while allowing it to take advantage of expected interest rate cuts.
The lending syndicate includes BDO Unibank, Bank of Commerce, Bank of the Philippine Islands, China Banking Corporation, Metropolitan Bank and Trust Co., Philippine National Bank, and Union Bank of the Philippines. BDO Capital & Investment Corporation acted as lead arranger and sole bookrunner, while BDO Unibank — Trust and Investments Group served as security trustee, facility agent and paying agent.
To recall, Bloomberry’s net income fell 57.83 percent to P3.5 billion in the first nine months of 2024, as costs from its new project and fewer casino visitors weighed on earnings.
The company reported a P470 million net loss in the third quarter, a sharp reversal from the P1.9 billion profit a year ago. Despite this, revenues rose 6 percent year-on-year to P38.5 billion.
Bloomberry said the decline was mainly due to higher depreciation and interest expenses at Solaire Resort North in Quezon City, which opened in May 2024. Maria Romero