The Philippines’ Government Service Insurance System and the Philippine Commercial Capital are forking over a total of Php1 billion in shares raised by Leisure and Resorts World Corp to finance the Belle Grande Integrated Resort and Casino project.
Taken together, the investment entered by the two companies equates to 60 percent of the total Php1.65 billion raised by Leisure and Resorts. The preferred shares, which were sold to eight other investors, will carry with it an annual coupon rate of 8.5 percent (non-voting) with interest income set to be released every six months.
“The fresh funds will be used to primarily finance LRWC’s participation in the Belle Grande integrated resort and casino project,” the company said in a statement.
Interestingly, the shares also come with a warrant that allows the holder the opportunity to add one common share of Leisure and Resorts to his existing haul for every 20 shares priced at Php15 or the average weighted trading price for the three months prior, whichever of the two amounts are lower with an the exercisable option available beginning on the fifth year.
In addition to using the funds to help finance LRWC’s share in the building and development of Belle Grande, the money will also be staked out for use on numerous other projects, including the renovation and expenses of the company-owned Midas Hotel and Casino, as well as the construction of a Techzone BPO building in Makati and the acquisition and roll-out of new bingo sites.
The hope, at least as far as LRWC chairman Reynaldo Bantug is concerned, is to receive a sizable and fresh infusion of funds, allowing the company to capitalize on further developing its growing gaming business outside of its online gaming niche.