Tiger Resorts Leisure and Entertainment Inc. (TRLEI), which operates Okada Manila, has agreed to borrow $400 million from Bank of China in the Philippines as part of parent company Universal Entertainment Corp.’s plans to refinance an existing $760 million private placement bond that matures in December.
The loan is one of two steps Universal has taken in relation to its maturing bonds, with the company also saying it would issue new US dollar-denominated international private placements through its US financial adviser CBRE Capital Advisors.
“The purpose of the refinancing is to improve the group’s cash flow structure and ensure liquidity by using the proceeds from the issuance of the new bonds to repay all outstanding existing bonds early,” Universal said in a statement about the new bonds.
Meanwhile, TRLEI’s loan is scheduled to close on August 1, 2024, with a term of seven years and an interest rate of 6.75% per annum. The company said it has provided “a real estate mortgage and a share pledge” as collateral.
TRLEI last week reported that Okada Manila’s total gaming revenue for the three months ended June 30, 2024 was 11.3 billion pesos (US$194 million), down 21.8 percent year-on-year due to a significant decline in the VIP and gaming machine segments, although the result was a slight improvement from the first quarter.