Bloomberry Resorts Corporation (PSE:BLOOM) has successfully refinanced a P40-billion syndicated loan, reinforcing its financial position amid ongoing expansions. The refinancing, secured through its subsidiaries Bloomberry Resorts and Hotels, Inc. (BRHI) and Sureste Properties, Inc. (SPI), was formalized in a signing ceremony at Solaire Resort Entertainment City.
The new loan facility, structured as the Sixth Amendment to the original P40-billion syndicated term loan secured in 2019, carries a 10-year term maturing in February 2035. Key features of the refinancing include:
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A 75-basis-point reduction in interest margin compared to the original loan.
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The ability to fix interest rates within the next 12 months.
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A payment structure that defers heavier principal payments to the last three years of the term.
These adjustments are expected to ease debt service obligations and position Bloomberry to benefit from anticipated interest rate cuts in the coming months.
“Our recent refinancing activities optimize our cash flow by reducing annual interest and principal payments,” said Bloomberry Chairman and CEO Enrique K. Razon Jr. “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 syndicated refinancing facility was secured with a consortium of leading banks, including:
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BDO Unibank, Inc (PSE:BDO).
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Bank of Commerce (PSE:BNCOM)
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Bank of the Philippine Islands (PSE:BPI)
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China Banking Corporation (PSE:CBC)
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Metropolitan Bank and Trust Co. (PSE:MBT)
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Philippine National Bank (PSE:PNB)
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Union Bank of the Philippines (PSE:UBP)
BDO Capital & Investment Corporation acted as the lead arranger and sole bookrunner, while BDO Unibank, Inc. – Trust and Investments Group served as the security trustee, facility agent, and paying agent.
The refinancing comes as Bloomberry continues to manage financial challenges stemming from the opening of Solaire Resort North in Quezon City. Increased interest and depreciation costs at the new integrated resort have impacted earnings, with the company reporting a net income decline of 58% to P3.5 billion in the first nine months of 2024. However, revenue growth of 6% year-on-year to P38.5 billion signals resilience in operations.
Despite near-term financial pressures, Bloomberry remains confident in its expansion strategy, leveraging refinancing measures to optimize cash flow and support long-term growth.