Bloomberry looks to raise fresh funding abroad

MANILA, Philippines - Razon-led Bloomberry Resorts Corp., the operator of the $1.2-billion Solaire Resort and Casino in Entertainment City, is looking to raise fresh funding abroad by tapping an international unit for the issuance of bonds and notes. The company said in a disclosure to the stock exchange that its board of directors approved the amendment in the articles of incorporation “to include in its primary purpose the power to guarantee the obligations of its subsidiaries or affiliates or any entity in which the corporation has lawful interest.”

“This amendment will allow Bloomberry to raise funds through issuance of bonds or notes by offshore financing vehicles that it will guarantee,” it added.

The guarantee clause to an offshore unit also provides Bloomberry a vehicle to raise funds from international investors.

The amendment in the articles of incorporation is subject to shareholders’ approval during the company’s annual stockholders meeting on June 24.

Since early this year, several listed firms have guaranteed the debts of their offshore units.

In January, the overseas unit of taipan John Gokongwei’s investment vehicle JG Summit Holdings Inc. announced plans to raise funds through corporate notes. JG Summit will guarantee the debts of subsidiary JGSH Philippines Ltd.

In March, Filinvest Development Corp. of the Gotianun family said it will guarantee the payment of interest rates of an offshore unit’s planned issuance of $300 million bonds.

Bloomberry, for its part, has yet to announce the amount it intends to raise from the international market.

In the first quarter, the casino owner’s net loss widened 688 percent to P1.05 billion amid higher pre-operating expenses.

However, Bloomberry expects a turnaround given the start of operations of Solaire on March 16. For the first 15 days of operation, it generated P578.3 million in total revenues.

The $750-million Phase 1 of Solaire has 500 rooms, 18,500 square meters of gaming space and 15 luxurious dining options.

Solaire is spending $450 million for the Phase 1A expansion that will allow the company to open a 300-all-suite hotel, 3,900 parking slots, a shopping center with luxury brand stores and an entertainment theater by next year.