Suntrust issues US$120mln in bonds to Summit Ascent

Manila-listed Suntrust Resort Holdings Inc has issued convertible bonds in the principal amount of PHP6.4 billion (US$120.1 million) to a unit of Hong Kong-listed Summit Ascent Holdings Ltd. The bonds were used to repay a US$120-million loan provided last year by Summit Ascent Investments Ltd, according to a Monday filing by Suntrust.

Suntrust – until recently known as Suntrust Home Developers Inc – is developing the “main hotel casino” (pictured in a rendering) at the Westside City Project, located in Manila’s Entertainment City. According to information provided by the group, the project has a price tag of approximately US$1 billion, and should commence operation in 2024.

Suntrust said in the filing that it issued the convertible bonds “to offset and in payment for the US$120 million loan obtained in 2021”. In addition, the Philippine company must pay Summit Ascent Investments just above US$6.79 million in accrued interest in excess of the maximum amount covered by the bonds.

Suntrust is 51-percent indirectly owned by Suncity Group Holdings Ltd, a Hong Kong-listed firm that – until his resignation in early December – had been chaired by Macau casino junket boss Alvin Chau Cheok Wa.

Following conversion of the bonds, Summit Ascent’s subsidiary should control a 34.85-percent stake in Suntrust, according to Monday’s filing.
Suncity Group Holdings is the controlling shareholder of Summit Ascent, with a total stake of 69.66 percent in that company.

Source: https://www.ggrasia.com/suntrust-issues-us120mln-in-bonds-to-summit-ascent/