Suntrust extends deadline for Westside City casino funding

There has been a delay in obtaining a permit from the Philippines Securities Exchange Commission.

The Philippines.- Suntrust Resort Holdings has extended the closing date on a deal to raise up to PHP13.51bn (US$235.2m) to fund its Westside City project. The deadline has been pushed back by 12 months to April 30, 2025. 

Last July Summit Ascent Investments, a subsidiary of Hong Kong-listed Summit Ascent Holdings, had agreed to subscribe to convertible bonds worth up to PHP13.51bn (US$247.5m) issued by Suntrust Resort Holdings, with an original closing date of April 30 this year.Suntrust confirmed the new closing date in a filing on Friday (May 3).

Summit Ascent has recently filed a statement stating that the deal has not yet been completed, citing the necessary consent, approval, and waiver from the Philippines Securities Exchange Commission (SEC) and other relevant government authorities regarding the subscription agreement still need to be obtained by Suntrust. It said it would take an additional 12 months to obtain SEC confirmation. 

The reason for Summit Ascent’s financial assistance to Suntrust is because the latter has failed to pay interest on a 2020 convertible bond and a 2022 convertible bond, which may deter relevant lenders or investors from providing funding for the remaining capital expenditure needs for the development of the main hotel casino and may significantly postpone its completion and opening.

In April, Suntrust announced that its board had approved a US$38m loan from LET Group Holdings, the parent company of both Summit Ascent and Suntrust. The Westside City Project is expected to open in the first quarter of 2025. The company had originally planned a 2023 opening. The US$1bn project is set to include 400 gaming tables and 1,200 slot machines, 450 five-star hotel rooms and 960 parking spaces.