MANILA, Philippines - Hotel and gaming firm Leisure & Resorts World Corp. (LRWC) will proceed with its planned issuance of P250 million worth of preferred shares next year.
The listed firm intends to expand its bingo sites and data center as it completes its financial commitment to a $1.3 billion integrated casino project.
“As part of the company’s commitment, LRWC is working to have another tranche of preferred shares of P250 million offered to the investing public and listed on the Philippine Stock Exchange by the first quarter of 2014,†LRWC said.
“The next tranche will have same features and benefits as the current preferred shares already listed,†it added.
In October, LRWC’s board of directors approved 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 timeframe.
Proceeds of the sale of preferred shares will bankroll the acquisition, expansion and renovation of bingo sites (P200 million) and for data center and telecommunications upgrade (P50 million), LRWC earlier said.
Last week, the company listed P1.65 billion worth of preferred shares in the local bourse. In July, LRWC secured P1.65 billion through preferred shares that carry a coupon rate of 8.5 percent per annum.
LRWC said buyers of the preferred shares include the Government Service Insurance System, Philippine Commercial Capital Inc., Philippine Business Bank, Vantage Equities Inc., Maybank ATR Kim Eng Capital Partners Inc. and United Coconut Planters Life Assurance Corp.
“The funds were used primarily to finance LRWC’s participation in Belle Corp.’s City of Dreams Integrated Resort and Casino project,†the gaming firm said.
Proceeds of the offering were also used to renovate the Midas Hotel and Casino, build the Techzone BPO building in Makati City 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 City of Dreams Manila. It will also earn from casino operations.
City of Dreams Manila which will start operations in the second half next year, will be the second casino complex to open in Pagcor 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 the100-hectare Entertainment City.
Casino giant Melco Crown Entertainment Ltd. will manage the integrated casino project, marking Melco’s first foray outside Macau.