Philippines-based casino operator Bloomberry Resorts Corp announced on Tuesday a PHP72.0-billion (US$1.25 billion) syndicated refinancing facility with a group of banks.

In a statement to the Philippine Stock Exchange, Bloomberry said the agreement was signed by its subsidiaries Bloomberry Resorts and Hotels Inc, as borrower, and Sureste Properties Inc, as surety and third-party security provider.

BDO Capital and Investment Corp served as lead arranger and sole bookrunner for the deal.

Bloomberry explained that the new facility would replace its existing PHP73.5-billion syndicated term loan facility obtained in 2018, and a PHP20-billion additional term loan facility that Bloomberry Resorts and Hotels obtained in December 2020.

The new syndicated refinancing facility provides for a term of 10 years, until October 2034, Bloomberry said.

“The refinanced loan maintains a back-ended principal payment schedule, similar to the structure of its predecessor,” it added. “More than 65-percent of the balance will come due in the last five years of the facility.”

Bloomberry noted that the updated loan was “priced at a spread that is 75 basis points lower than the previous facilities and gives the option to fix the interest rate within the next 12 months”. The firm stated this feature would allow it to “benefit from further interest rate cuts that are expected to be implemented in the coming months”.

Commenting on the deal in prepared remarks, Bloomberry chairman and chief executive, Enrique Razon, said the group viewed the latest refinancing deal “as a positive development that will allow the company to lighten its debt service and preserve cash as Solaire Resort North ramps up, improve the company’s bottom line, and ultimately ensure the consistent return of capital to our shareholders in the coming years.”

Bloomberry runs Solaire Resort & Casino (pictured) in the Philippine capital Manila, and in May opened Solaire Resort North, another gaming complex in Quezon City, northeast of Manila.