Leisure & Resorts to sell preferred shares to expand gaming business

MANILA, Philippines - Gaming and recreation firm Leisure & Resorts World Corp. (LRWC) is planning to sell preferred shares to fund the expansion of its bingo sites and improve its data center facilities, the company said yesterday.

LRWC said its board has approved the filing of a registration statement and the draft prospectus with the Securities and Exchange Commission and Philippine Stock Exchange (PSE) “in connection with the public offering of 250 million perpetual preferred shares with 12.5 million detachable warrants issued free of charge as well as the 12.5 million underlying common shares.”

A warrant gives investors the right to buy shares from the issuer at a specific price within a specific time frame.

Proceeds from the issuance of the preferred shares will allow the company to expand its operations, LRWC investors relations chief Freddie Reyes said.

He said P200 million will be used for acquisition, expansion and renovation of bingo sites and P50 million for data center and telecommunications.

LRWC filed for the listing of the preferred shares in the PSE, Reyes said, adding that the share sale is expected in end-November or early next year.

Shareholders earlier approved the plan to issue P250 million worth of Series 2 preferred shares, which carry a yield of 8.5 percent dividend per year.

LRWC had raised P1.65 billion in July through preferred shares, which will primarily finance the company’s participation in the $1.3-billion Belle Grande integrated resort and casino project.

The proceeds will also bankroll construction and capital expenditures of Midas Hotel and Casino and the Techzone office building, which will offer more than 75,000 square meters of gross floor area in Makati. LRWC also aims to acquire and roll out additional bingo sites.

LRWC subsidiary AB Leisure Global Inc. is entitled to 30 percent of the fixed yearly income generated from the lease of all commercial spaces in Belle Grande Manila. It will also earn from casino operations.

Belle Grande Manila, which will start operations in the second half next year, will be the second casino complex to open in Pagcor’s Entertainment City, the area groomed to become the Philippines’ version of the Las Vegas strip. In March, port mogul Enrique Razon opened his $1.2-billion Solaire Casino & Resort.

LRWC partnered with Belle Corp., the leisure development firm of mall and banking tycoon Henry Sy, for the casino project within the 100-hectare Entertainment City.

Casino giant Melco Crown Entertainment Ltd. will manage the integrated casino project, which marks Melco’s first foray outside Macau.