Bloomberry secures $688M syndicated refinancing facility

February 13, 2025

Bloomberry secures $688M syndicated refinancing facility

Philippines’ leading land-based gaming operator Bloomberry Resorts Corporation has recently secured a PHP40 billion (approximately $688 million) syndicated refinancing facility. This marks a significant step in its ongoing financial strategy.

The new facility has been secured from a group of banks through its subsidiaries including Bloomberry Resorts and Hotels, Inc. (BRHI) and Sureste Properties Inc. (SPI).

A syndicated refinancing deal is a financial agreement in which multiple lenders collaborate to provide a borrower with a large loan. For Bloomberry, the syndicated refinancing facility offers a pathway to manage its financial obligations efficiently while maintaining the flexibility needed for future investments.

The new deal marks a key development in Bloomberry’s financial management approach, as it represents the sixth amendment to an existing syndicated term loan facility initially secured in February 2019. Finance from the original loan helped the construction of Solaire Resort North.

This recent refinancing is not Bloomberry’s first refinancing initiative. In October, the company had secured another significant refinancing deal totaling PHP72 billion.

Details about the new facility

The current syndicated facility has a term of 10 years extending until February 2035. The principal repayment schedule, however, is front-loaded, with heavier payments expected in the last three years of the facility. This arrangement is designed to give Bloomberry the breathing room it needs in the initial years, allowing it to better manage its cash flow and plan for future financial obligations.

According to a filing with the Philippine Stock Exchange on Wednesday, the interest margin on the loan is 75 basis points lower than the original facility. It allows the company the opportunity to fix the interest rate in the next 12 months, wherein Bloomberry can benefit from anticipated interest rate cuts in the near future.

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 provide a consistent return of capital to our shareholders.”

The loan facility was arranged with the help 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.