Universal Entertainment, via Tiger Resort, Leisure and Entertainment Inc., signed a seven-year loan agreement with Chinabank on July 19, the Japanese gaming giant said in a regulatory filing.
Tiger Resort operates the $3 billion Okada Manila hotel and casino in the Entertainment City gaming district along Manila Bay.
The loan interest rate will be adjusted quarterly to either 6.75 percent or the market rate plus 1.75 percent, whichever is higher, the filing showed. The target date of borrowing is on Aug. 1 this year.
Big picture
Universal Entertainment faces a potential downgrade if it fails to repay or refinance $760 million in obligations coming due in December this year.
The company is under increased scrutiny after being placed on a “ratings watch negative” review by credit agency Fitch.
Equity offer next?
Chinabank’s loan, covering more than half of Universal Entertainment’s needs, is a major step toward stabilizing the company’s finances.
Resolving its debt woes also enables Okada Manila’s owner to focus on preparing the casino group for a potential IPO in 2025, which was earlier reported by InsiderPH.
Chinabank raises gaming exposure
In June last year, Chinabank struck a P25 billion loan deal to support Suntrust Resort Holdings’ Westside City casino, also located in Entertainment City.
The Sys, via Belle Corp., have further interests in the segment through the City of Dreams Manila project within the same complex.
Outside Entertainment City, Chinabank owns the Mactan, Cebu property of the stalled $300 million Emerald Bay casino project of Davao-based tycoon Dennis A. Uy.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
