Bloomberry secures US$1.24bn refinancing loan

The syndicated refinancing facility is intended to reduce debt service and improve cash flow.

The Philippines.- Bloomberry Resorts has announced it has signed a PHP72bn (US$1.24bn) syndicated refinancing facility that replaces a previous PHP73.5bn (US$1.27bn) loan facility acquired in 2018 and a PHP20bn (US$345.5m) term loan obtained in December 2020. The agreement was reached with a group of banks.

The company said the new agreement is priced at a spread 75 basis points lower than the previous facilities, with an option to fix the interest rate within the next 12 months. “This feature will allow Bloomberry to benefit from further interest rate cuts that are expected to be implemented in the coming months,” the company said.

Enrique K. Razon Jr., Bloomberry chairman and CEO, commented, “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.”

The group of lenders comprises BDO Unibank, Bank of the Philippine Islands, China Banking Corporation, and Philippine National Bank. BDO Capital and Investment Corporation acted as the main organiser and only book-runner, while BDO Unibank – Trust and Investments Group will serve as the security trustee, facility agent and paying agent.

The company said Solaire Resort North is expected to contribute to the group’s cash flows as it becomes more profitable in the coming quarters. The venue opened in Quezon City in May and is expected to achieve full operational capacity within two years.

Bloomberry reported net income of PHP1.3bn (US$23.4m) for the second quarter of the year, down 61 per cent year-on-year and down from the PHP2.6bn (US$45m) reported for the first quarter of the year. Gross gaming revenue (GGR) was PHP14.5bn (US$261m), down 4 per cent year-on-year.

Consolidated earnings before interest, taxation, depreciation and amortisation (EBITDA) was PHP3.6bn (US$64.8m), down 33 per cent when compared to the second quarter of 2023. Non-gaming revenue was PHP2.4bn (US$43.2m), representing an increase of 19 per cent sequentially. Net revenue was PHP12.3bn (US$221.4m), down 3 per cent quarter-on-quarter.