Bloomberry raises P8.85 billion for casino-resort project

MANILA, Philippines - Razon-led Bloomberry Resorts Corp. has raised P8.85 billion (approximately $210 million) through a top-up offering overseas to help fund its multi-billion peso resort and gaming complex along Roxas Blvd.

In a disclosure to the Philippine Stock Exchange, Bloomberry said it sold 1.18 billion shares at P7.50 each, the mid-point of the indicative price range of P6.55 to P8.25 a piece.

Bloomberry’s underwriters have set aside around 117.996 million shares for the overallotment option.

The company is expected to generate a total of P9.73 billion should the greenshoe option be exercised.

The shares were crossed at the PSE yesterday. Investors sold down shares of the company, resulting in a 25-percent drop in its share price to P9.01 yesterday from P12 Monday.

Under the top-up scheme, port magnate Enrique Razon’s Prime Metroline will lend some secondary shares of Bloomberry for sale to institutional investors but will buy the same number of shares to be issued by Bloomberry in the future.

CLSA Ltd. and UBS AG were tapped as joint global coordinators, bookrunners and lead managers for the placing transaction.

Bloomberry has granted Nevada-based casino operator GGAM the option to buy up to 921.18 million shares equivalent to 9.91 percent at P1 per share plus $15 million. The option will expire if not exercised by the date of commercial operations of Bloomberry’s $1.2-billion Solaire Manila project in Pagcor Entertainment City.

GGAM will provide planning, technical and other advisory services to the Solaire Manila project during its construction and fit-out stage. It will also provide management services when Solaire Manila commences commercial operations.

Proceeds from the offering will be used to develop the first phase of Solaire Manila, the first casino complex to rise in Pagcor’s Entertainment City, which is targeted for completion in the fourth quarter this year.

Phase 1 of the project, estimated to cost $650 million, covers 180,000 square meters of floor area, which includes a hotel tower, three levels of podium that has the ballroom/convention facilities, gaming areas, restaurants, retail shops, and health and wellness facilities. A 10-story parking building will also be constructed.

The complex is targeted for a grand opening in the first quarter of 2013.