Regardless of how its issues with Global Gaming Asset Management goes, Bloomberry Resorts Corporation is moving ahead with its planned expansion of Solaire Manila. The company took a big step in accomplishing that after announcing that it had raised P11.425 billion through a private debt deal for the expansion of the integrated resort and casino.
The disclosure was made by Bloomberry to the Philippine Stock Exchange with Bloomberry Resorts and Hotels Inc., a subsidiary of Bloomberry Resorts Corp, acting as the issuer of the corporate notes with Sureste, another subsidiary of the parent company, guaranteeing the debt notes. All in all, six banks participated in the company’s corporate notes facility, including China Banking Corp., Robinsons Bank Corp., United Coconut Planters Bank, and three separate entities of one of the Philippine’s biggest banks, BDO Unibank Inc., BDO Leasing and Finance Inc., BDO Private Bank Inc.
Bloomberry’s decision to issue corporate notes in favor of a retail bond offering was made in large part because of the expediency by which the former can be accomplished compared to the latter. Unlike bond offerings, corporate notes are issued to no more than 19 institutional investors, thus providing is a faster way for companies to raise fresh funds. Bloomberry’s plan was to get the funds needed for Solaire’s expansion as fast as it could, and it got that to the tune of Php11.425 billion, which is about $250 million based on current exchange rates.
With the money now at its disposal, Bloomberry is expected to use it to finance Solaire’s Phase 1-A expansion, which will include a new 300-suite boutique hotel tower, a performance theater with up to 1,800 seats, more retail and dining options, and most importantly, more gaming options to the tune of 200 more slot machines and 65 new gaming tables.
No timetable has been set on when the expansion will be completed, but it could be somewhere around 2016 based on our own estimates.