BLOOMBERRY Resorts Corp. has signed a new loan facility that refinances a P93.5-billion borrowing it tapped in 2018 and 2020.
The new loan – a P72 billion syndicated refinancing facility – was signed by unit Bloomberry Resorts and Hotels Inc. (BRHI) as borrower, and Bloomberry owner Sureste Properties Inc. (SPI) as surety and third party security provider.
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, Bloomberry said in a statement yesterday.
The syndicate of lenders is composed of BDO Unibank Inc., Bank of the Philippine Islands, China Banking Corp., and Philippine National Bank.
BDO Capital served as lead arranger and sole bookrunner while BDO Unibank, Inc —Trust and Investments Group is the security trustee, facility agent, and paying agent.
The new loan is payable in 10 years or until October 2034.
“The refinanced loan maintains a back-ended principal payment schedule, similar to the structure of its predecessor. More than 65 percent of the balance will come due in the last five years of the facility,” Bloomberry said.
“The updated loan is priced at a spread that is 75 basis points lower than the previous facilities and gives the option to fix the interest rate within the next 12 months. This feature will allow Bloomberry to benefit from further interest rate cuts that are expected to be implemented in the coming months,” it added.
Enrique Razon Jr., Bloomberry chairman, said the refinancing as a positive development that will allow the company to “lighten 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.”
