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Bloomberry Resorts Corp., the owner and operator of Solaire Resorts and Casino, said Tuesday it is securing an additional P20-billion funding to support the cash flow of its gaming facility.
Bloomberry said in a disclosure to the stock exchange unit Bloomberry Resorts and Hotels Inc. signed with a syndicate of banks an amendment to the P73.5-billion omnibus loan and security agreement for an additional facility in the principal amount of P20 billion. It said the facility was oversubscribed.
“Securing an additional funding option during this difficult time is a landmark achievement for our company and a resounding vote of confidence by our lenders,” Bloomberry chairman and chief executive Enrique Razon Jr. said.
The additional P20-billion facility will be available for two years from the signing of the amendment agreement and any amount borrowed will be payable within five years from the date of the first drawdown, it said.
Bloomberry said the additional funding would be used to support the cash flow requirements of Solaire, partially finance capital expenditures for the improvement and refurbishment of existing facilities at Solaire and partially finance BRHI’s working capital requirements and other general corporate purposes.
Interest payments on the loan will be based on a floating rate, calculated on a quarterly basis.
“BRHI intends to draw only the amount that it requires for the purposes it has stated to minimize additional interest expenses,” Razon said,
The syndicate of banks participating in the additional facility is composed of BDO Unibank Inc., China Banking Corp., Philippine National Bank, Robinsons Bank Corp., and United Coconut Planters Bank, all of whom are part of the original syndicate of banks that participated in the P73.5-billion loan facility.
BDO Capital and Investment Corp. served as lead arranger and sole bookrunner, while BDO Unibank Inc.-Trust and Investments Group was assigned as security trustee, facility agent and paying agent.
Bloomberry is also developing a second hotel casino in Quezon City. The share price of Bloomberry fell 4.32 percent Tuesday to close at P8.20.