Bloomberry Refinances ₱40 Billion Loan

Bloomberry Resorts Corporation (Bloomberry) subsidiaries Bloomberry Resorts and Hotels, Inc. (BRHI) and Sureste Properties Inc. (SPI) have signed a borrowing agreement with a syndicate of banks for P40 billion, termed the Sith Refinancing Facility, to refinance its existing P40 billion loan, which was used to partially finance the construction of Solaire Resort North.

This is the second refinancing exercise successfully completed by Bloomberry in the last four months. I Photo: Solaire Resort

This is the second refinancing exercise successfully completed by Bloomberry in the last four months.

The key features of the P40 billion Syndicated Refinancing Facility are similar to the P72 billion facility obtained in October last year. The new facility carries a term of 10 years, expiring in February 2035, with a principal payment schedule structured to have heavier payments in the last three years.

The interest margin on the loan is 75 basis points lower than the original facility, providing borrowers the opportunity to fix the interest rate within the next 12 months.

These features will ease debt service requirements over the coming years and allow Bloomberry to benefit from anticipated interest rate cuts in the coming months.

Enrique K. Razon Jr., Bloomberry Chairman and CEO, commented, “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 the lead arranger and sole bookrunner, while BDO Unibank, Inc. – Trust and Investments Group acts as the security trustee, facility agent, and paying agent.