Suntrust raises P12.9 billion for casino project

Suntrust Home Developers, Inc. has raised P12.9 billion from the issuance of convertible bonds to finance the construction of its hotel and casino complex in the Entertainment City.

In a disclosure to the Philippine Stock Exchange, the firm said it issued P7.3 billion zero coupon Convertible Bonds in favor majority shareholder Fortune Noble Limited.

The bonds have a maturity date falling on the fifth anniversary of the issue date which may, subject to agreement by the holder of the Convertible Bond upon request by SUN, be extended to the date falling on the 10th anniversary of the issue date.

Suntrust also issued P5.6 billion 6 percent Convertible Bonds in favor Russian hotel and gaming firm Summit Ascent Investments Limited under the same conditions.

Proceeds from both issuances will be applied by Suntrust for the development of a 5-star hotel and casino project to be located at Manila Bayshore Integrated City in Paranaque City.

The Main Hotel Casino shall have approximately 400 hotel rooms, the standard room size of which shall range from 34 square meters to 39 sqm.

The casino will have approximately 400 gaming tables and 1,200 slot machines for both mass and VIP markets.

A parking facility with 960 slots for the Main Hotel and Casino will also be built.

The bonds issued to Fortune Noble is convertible on the fifth anniversary of the issue date, extendable to the 10thanniversary at the rate of P1.10 to one common share, subject to adjustments.

A total of 6.34 billion underlying shares, equivalent to 47.79 percent of Suntrust’s outstanding shares, will be issued upon conversion of the bonds.

On the other hand, the bonds issued to Summit Ascent will be convertible at P1.80 per common share on the fifth anniversary of the issue date, also extendable to the 10thanniversary.

A total of 3.11 billion underlying shares equivalent to 30 percent of Suntrust’s outstanding capital will be issued upon conversion of the bonds.

Article and Photo originally posted by Manila Bulletin last January 1, 2021 5:30am and written by James A. Loyola. Minor edits have been made by REBPH to cater to its own readers.