SUBSIDIARIES of Razon-led Bloomberry Resorts Corp. has added P20 billion to its current lending facility in an attempt to lower interest rates.
On Tuesday, the company disclosed in a regulatory filing that the two subsidiaries had signed an amendment to the P73.5-billion loan and security agreement increasing the credit facility for an additional P20 billion.
A spokesman of the company announced that the facility was oversubscribed.
Under this agreement, the bank provides an additional loan facility for two years and provides the financing for the saving of interest payments on the loan.
Any amount borrowed can be paid in 5 years from the first drawdown, while interest payments will have no fixed rate, but on a quarterly basis.
The added earnings will partly replace financing needed to run the resort and temporarily support operations.
In a separate disclosure on Tuesday, BRHI plans to draw only the amount necessary for the stated purpose and will not be carrying any additional interest expenses.
“Securing additional funding is a landmark achievement for our company and a resounding vote of confidence by our lenders,” said Manuel Razon, Chairman and Chief Executive Officer, Equitable PCI Bank.
Along with the participation from banking companies in the amendment, these banks include BDO Unibank, Inc, China Banking Corp, Robinsons Bank Corp and United Coconut Planters Bank.
In this arrangement, BDO Capital and Investment Corp. is appointed lead arranger. BDO Unibank, Inc.–Trust and Investments Group has been assigned as security trustee, facility agent, and paying agent.
Among BRHI’S and SPI’s lenders, deferment of financial covenant testing was given until the end of the March 2020 quarter.