Resorts World to issue P250-M preferred shares

MANILA, Philippines - Listed gaming concern Leisure & Resorts World Corp. obtained the Securities and Exchange Commission’s nod to issue P250 million worth of perpetual preferred shares with 12.5 million detachable warrants.

The preferred shares, which are cumulative, non-voting and non-participating,  have a coupon rate of 8.5 percent per annum and are paid semi-annually.

For each 20 preferred shares, the holders are entitled to one warrant convertible to common shares starting on the fifth year. Each warrant, if exercised at a price of P15 or the average weighted trading price for the three months prior (whichever is lower) will be converted to one common share.

The warrants are exercisable starting on March 31, 2019 until March 31, 2022.

Based on documents filed with the SEC, the offer period will run from March 13 to 21 while the listing date has been tentatively scheduled on March 31.

LRWC is expected to raise about P437.5 million from the offering upon full payment of the preferred shares and the exercise of the all warrants.

Proceeds will be used to fund the purchase of the 79-room Binondo Hotel Suites Manila (P25 million) and the construction and renovation of gaming sites (P175 million).

About P30 million will go to the automation of an enhanced management and monitoring system while some P20 million will be used for the installation of new servers for Rapid Bingo.

The eight-storey Binondo Suites Manila is a three-star hotel located at the heart of Chinatown district at the corner of Ongpin and Sabino Padilla sts in Binondo, Manila.

The  ground up to  third floor of the hotel includes a slot machine arcade  with a total floor area of 1,500 square meters while the remaining floors comprise the hotel.

LRWC continues to expand its bingo business with 42 potential sites identified for construction.