Bloomberry Resorts Corp. and its subsidiaries signed a P40 billion term loan to refinance the money it borrowed in 2019 to partially finance the Solaire Resort North in Quezon City.
In a disclosure with the Securities and Exchange Commission on Wednesday, Bloomberry said its co-borrowers include Bloomberry Resorts and Hotels Inc. and Sureste Properties Inc. The loan, signed with a group of banks, is a syndicated refinancing facility.
“This was documented as the Sixth Amendment to refinance the existing P40.0 billion Syndicated Term Loan Facility obtained by the borrowers in February 2019 to partially finance the construction of Solaire Resort North. This is the second refinancing exercise successfully completed by Bloomberry in the last four months,” parent Bloomberry said.
Enrique K. Razon Jr., Bloomberry chairman and CEO, said, “Our recent refinancing activities optimize our cash flow by reducing annual interest and principal payments. 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 P40.0 billion syndicated refinancing facility are similar to the P72 billion facility obtained in October last year. The new facility carries a term of 10 years or until February 2035, while the principal payment schedule is structured in such a way that heavier payments will be made only in the last three years of the facility.
The interest margin on the loan is 75 basis points lower than the original facility and gives the borrowers the opportunity to fix the interest rate in the next 12 months.
Bloomberry said the new borrowing terms will lighten its debt service requirements over the coming yearsand allow the company to benefit from anticipated interest rate cuts in the coming months.
The syndicate of lenders includes BDO Unibank Inc., Bank of Commerce, Bank of the Philippine Islands, China Banking Corp., Metropolitan Bank and Trust Co., Philippine National Bank, and Union Bank of the Philippines.
BDO Capital & Investment Corp. served as lead arranger and sole bookrunner while BDO Unibank Inc. – Trust and Investments Group serves as the security trustee, facility agent, and paying agent.
