Bloomberry units infuse P20 billion more in existing loan facility
SUBSIDIARIES of Razon-led Bloomberry Resorts Corp. have added P20 billion to its existing loan facility in an effort to reduce interest expenses.
In a regulatory filing on Tuesday, the company said its subsidiaries, Bloomberry Resorts and Hotels, Inc. (BRHI) and Sureste Properties, Inc. (SPI), signed an amendment to the P73.5-billion omnibus loan and security agreement for an additional P20 billion to its loan facility.
The company added that the facility was oversubscribed.
According to the disclosure, the additional loan will be available for two years from the agreement signing and can be used to save on interest payments.
It added that any amount borrowed can be paid within five years from the date of the first drawdown, while interest payments on the loan will be on a floating rate, and determined on a quarterly basis.
“The additional funding, if drawn, will be used to support the cash flow requirements of Solaire Resort and Casino, 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,” it said.
In a separate statement on Tuesday, Bloomberry Chairman and Chief Executive Officer Enrique K. Razon, Jr. said BRHI plans to draw only the needed amount for the stated purpose and to reduce additional interest expenses.
“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,” Mr. Razon was quoted as saying.
Participating banks in the amendment include BDO Unibank, Inc., China Banking Corp., Philippine National Bank, Robinsons Bank Corp., and United Coconut Planters Bank.
BDO Capital and Investment Corp. is the lead arranger and only bookrunner, while BDO Unibank, Inc.–Trust and Investments Group has been assigned as security trustee, facility agent, and paying agent.
“BRHI’s and SPI’s lenders also granted the deferment of financial covenant testing on the existing term loan facilities for the quarterly periods covering September 30, 2020 to June 30, 2023,” the disclosure said.
On Tuesday, Bloomberry shares at the stock exchange fell 4.32% or 37 centavos to end at P8.20 apiece. — Revin Mikhael D. Ochave
