GGRAsia – Close date on US$235mln Suntrust bond deal put back a year

Close date on US$235mln Suntrust bond deal put back a year

May 03, 2024 Newsdesk Latest News, Philippines, Top of the deck

The closing date on a deal to raise up to PHP13.51 billion (US$235.2 million currently) for a firm developing a casino hotel scheme at Westside City in the Philippine capital Manila, has been put back by 12 months, to April 30, 2025.

Philippines-listed Suntrust Resort Holdings Inc, promoter of the Westside City casino hotel (pictured in an artist’s rendering), affirmed the new date in a Friday filing.

In July 2023, Summit Ascent Investments Ltd, a directly-held unit of Hong Kong-listed Summit Ascent Holdings Ltd, had agreed to subscribe to convertible bonds in the principal amount of up to PHP13.51 billion to be issued by Suntrust. The long stop date on the deal had been April 30 this year.

Summit Ascent issued on Tuesday its own filing on the delay. The company said that as of that date, some conditions to complete the deal “remained to be fulfilled,” including the obtaining by Suntrust “of the necessary consent, approval and waiver from [the Philippines] Securities Exchange Commission (SEC) and other relevant governmental authority” regarding the subscription agreement.

“The SEC confirmation is yet to be forthcoming as at the date of this announcement despite application has been made by Suntrust to the SEC,” stated Summit Ascent.

“As advised by the legal advisers to the group as to the law of the Philippines, it would take approximately an additional 12 months to obtain the SEC confirmation,” it added.

At the time of its July 2023 filing, Summit Ascent Holdings had said a reason for the “financial assistance” to Suntrust was that Philippines-listed Suntrust’s “failure to effect payment of interests” due under a 2020 convertible bond and a 2022 convertible bond “may deter” relevant lenders or investors “from providing funding for the remaining capital expenditure needs for the development of the main hotel casino and may significantly postpone its completion and opening”.

On April 22 this year, Suntrust said its board had agreed to a US$38-million loan from LET Group Holdings Ltd, the latter the parent of both Summit Ascent and Suntrust.

Suntrust is due to start operations at its casino hotel in the first quarter of 2025, according to a recent announcement.