Razon-led gaming firm Bloomberry Resorts Corporation is projected to save approximately ₱900 million annually due to the refinancing of loans used to fund the construction of Solaire Resort North.

"The company is not in any sort of debt or cash flow crisis. In fact, the (₱40 billion) restructuring (the first one, for ₱72 billion, was in October) will save Bloomberry around ₱900 million a year in interest payments because of the lower spreads," said a stock analyst.

He added that, "The savings will be partly reflected this quarter, with the full benefit expected in the second quarter."

Bloomberry earlier disclosed that subsidiaries Bloomberry Resorts and Hotels Inc. (BRHI) and Sureste Properties Inc. (SPI) signed a ₱40 billion Syndicated Refinancing Facility with a group of banks.

This was documented as the Sixth Amendment to refinance the existing ₱40 billion Syndicated Term Loan Facility obtained by the borrowers in February 2019 to partially finance the construction of Solaire Resort North.

This is Bloomberry's second successful refinancing in the past four months. The key features of the ₱40 billion Syndicated Refinancing Facility are similar to the ₱72 billion facility obtained last October.

The new facility carries a 10-year term, expiring in February 2035. The principal payment schedule is structured with heavier payments in the final three years.

The loan's interest margin is 75 basis points lower than the original facility and allows the borrowers to fix the interest rate within the next 12 months.

"These features will lighten debt service requirements in the coming years and allow Bloomberry to benefit from anticipated interest rate cuts in the coming months," Bloomberry said.

Bloomberry Chairman and CEO Enrique K. Razon Jr. stated, "Our recent refinancing activities optimize our cash flow by reducing annual interest and principal payments. The timely refinancing of our P40 billion facility demonstrates our proactive financial management stance and our commitment to providing a consistent return of capital to our shareholders.”

The syndicate of lenders includes BDO Unibank Inc., Bank of Commerce, Bank of the Philippine Islands, China Banking Corporation, Metropolitan Bank and Trust Co., Philippine National Bank, and Union Bank of the Philippines.

BDO Capital & Investment Corporation served as lead arranger and sole bookrunner, while BDO Unibank Inc.-Trust and Investments Group is the security trustee, facility agent, and paying agent.