Belle eyes P5B from stock rights offer for Manila Bay gaming complex

MANILA, Philippines -  Belle Corp. is planning to raise as much as P5 billion from a stock rights offering to fund its $750-million integrated gaming resort complex project along Manila Bay.

In a disclosure to the Philippine Stock Exchange, Belle said its board approved a rights offering of common shares to existing stockholders to raise between P4 billion and P5 billion.

Willy N. Ocier, vice-chairman of Belle, said the rights issue, which will be managed by BDO Capital & Investment Corp., is targeted in July.

“The specific terms and conditions of the rights issue, including the final issue size, rights entitlement, offer price and record date will be determined and disclosed at a later date,” he said.

Belle closed 2.2 percent lower yesterday at P4.75 each share.

Proceeds from the issue will go to the ongoing construction of Belle Grande Manila Bay, which includes casino and hotel facilities, as well as a theater complex.

Ocier said proceeds from the rights offer, together with the P5.6 billion in loan facility from Banco de Oro, would be enough to fund the construction of the initial phase of the project.

“The major shareholders are committed to support the equity offering, rather than issue more debt through a bond issue,” he pointed out.

Slated for soft opening in the second half of 2012, Belle Grande Manila Bay will have a total gaming area of 19,626 square meters with 350 gaming tables and 1,900 slot machines. The first floor will cater to the mass market while over 6,000 sqm of space will cater to VIPs.

The group was originally targeting to open the casino by the end of the year but pushed back the opening to make way for its expansion.

Belle Grande Manila Bay will provide guests with a full suite of amenities including six hotel towers, with approximately 1,000 rooms of which 86 are luxury suites, targeted for opening by the fourth quarter of 2013.

Of the six towers, one will be an all-suites hotel targeted toward the VIP market and junket gaming customers and another will be a four or five-star hotel targeted towards the mass market gaming customers with 159 rooms.

The remaining four will comprise condotel towers with a total of 466 units (Belle Grande Suites). The units may be sold to investors and placed in a pool to be managed by the company/hotel operator. Buyers can avail themselves of eight to 10 free nights at the resort in addition to a share of the rentals received.