Bloomberry Resorts Corporation refinanced a P40 billion debt related to the construction of Solaire Resort North, securing more favorable terms and lower interest rates.
Bloomberry Resorts Corporation has announced a P40 billion refinancing agreement. This is the company's second refinancing in recent months, following a similar move in October.
Bloomberry announced this in a Philippine Stock Exchange disclosure published in the afternoon of February 12, 2025.
The agreement refinances an existing P40 billion loan that contributed to the construction of Solaire Resort North. The new facility has a 10-year term, expiring in February 2035, with a principal repayment schedule that concentrates payments in the final three years. This structure mirrors the terms of the P72 billion refinancing completed in October.
“These features will lighten debt service requirements over the coming years and allow Bloomberry to benefit from anticipated interest rate cuts in the next months,” Bloomberry shared.
The new facility's interest margin is 75 basis points lower than the original loan. Bloomberry also has the option to fix the interest rate for the next 12 months. The company anticipates that these terms will reduce debt service requirements and position it to benefit from potential future interest rate decreases.
Enrique K. Razon Jr., Bloomberry Chairman and CEO, commented, "These refinancing activities are intended to optimize cash flow by reducing annual interest and principal payments. This P40 billion facility refinancing reflects a proactive approach to financial management and a focus on delivering shareholder returns."
The lending syndicate includes BDO Unibank, 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 – Trust and Investments Group is the security trustee, facility agent, and paying agent.
Read related article: Bloomberry Income Drops 58% Due to Solaire North Costs
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