Bloomberry secures P20-B funding

Bloomberry Resorts Corporation’s subsidiary Bloomberry Resorts and Hotels, Inc. (BRHI) has secured P20 billion in fresh funds.

In a disclosure to the Philippine Stock Exchange, Bloomberry said BRHI has 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. 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,” said Bloomberry Chairman Enrique K. Razon, Jr.

The additional 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.

The additional funding, if drawn, will be used to support the cash flow requirements of Solaire Resort and Casino (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,” added Razon.

The syndicate of banks participating in the additional facility is composed of BDO Unibank, Inc., China Banking Corporation, Philippine National Bank, Robinsons Bank Corporation, 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 Corporation 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.