Bloomberry Resorts Corp., a leading Philippines-based casino operator, has made a significant financial move by securing a $1.25 billion syndicated refinancing deal. This decision is part of the company’s ongoing efforts to enhance its financial flexibility and position itself for future growth.
Understanding refinancing deal
Bloomberry has been strategic in its expansion efforts, continuously innovating and providing top-notch experiences to its patrons. With its robust financial performance and commitment to growth, the company has earned a solid reputation in the hospitality and gaming sectors.
A syndicated refinancing deal is a financial agreement in which multiple lenders collaborate to provide a borrower with a large loan. For Bloomberry, the syndicated refinancing facility offers a pathway to manage its financial obligations efficiently while maintaining the flexibility needed for future investments. In this new agreement, Bloomberry Resorts Corp. has secured $1.25 billion from a group of banks through its subsidiaries Bloomberry Resorts and Hotels Inc and Sureste Properties Inc. BDO Capital and Investment Corp acted as the lead arranger and sole bookrunner for the deal.
This deal essentially replaces the $1.25 billion syndicated loan obtained by Bloomberry in 2018, and an additional $340 million loan secured in 2020. One of the most significant benefits of this refinancing deal is the reduction in interest rates by 75 basis points compared to the previous facilities. This lower cost of debt will help Bloomberry improve its bottom line over the next decade.
Bloomberry Chairman and CEO Enrique Razon highlighted the importance of this refinancing in enabling the company to lighten its debt service while ensuring continuous returns to shareholders. Razon said, “This is 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.”
Strategic move
Bloomberry’s decision to replace its existing loans is strategic in nature. By refinancing, the company can take advantage of lower interest rates and a more favourable payment structure. The long-term structure of the loan until 2034 gives Bloomberry the financial stability it needs to pursue its ambitious growth plans. This move also frees up capital, allowing the company to focus on its long-term projects, such as Phase 2 of Solaire Resort & Casino in Manila and the Cavite project.
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