The deal, signed at Solaire Resort Entertainment City, involves subsidiaries Bloomberry Resorts and Hotels Inc. and Sureste Properties Inc., and replaces the previous P73.5-billion loan from 2018 and a P20-billion term loan from December 2020.
The refinancing facility, which has a 10-year term extending until October 2034, maintains a back-ended principal payment structure, with over 65 percent of the balance due in the final five years.
The updated loan offers a pricing spread that is 75 basis points lower than the previous facilities, and includes an option to fix the interest rate within the next 12 months, allowing Bloomberry to take advantage of anticipated interest rate cuts.
Management's view
"We view this refinancing as a positive development that will allow the company to lighten its 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,” said Razon, the chair and CEO of Bloomberry.
Consortium of lenders
The group of lenders involved includes BDO Unibank Inc., Bank of the Philippine Islands, China Banking Corp., and Philippine National Bank. BDO Capital and Investment Corp. acted as the lead arranger and sole bookrunner, while BDO Unibank Inc. – Trust and Investments Group serves as the security trustee, facility agent, and paying agent.