GGRAsia – No deal yet on US$6mln bond interest payment: Suntrust

No deal yet on US$6mln bond interest payment: Suntrust

Jan 20, 2023 Newsdesk Latest News, Philippines, Top of the deck

Manila-listed Suntrust Resort Holdings Inc says it is yet to reach an agreement with Hong Kong-listed Summit Ascent Holdings Ltd over the payment of interest on convertible bonds issued in 2020 to a Summit Ascent unit.

“While no definite agreement has been executed as of date, Suntrust believes that an agreement on the terms of such refinancing/restructuring should be forthcoming,” stated the firm in a Thursday letter to the Philippine Stock Exchange.

On Monday, Summit Ascent said its profit for financial year ending December 31, 2022, could face a “material adverse” outcome due to Suntrust failing to pay the due interest on the convertible bonds issued in 2020.

The five-year, 6.0-percent convertible bonds in the principal amount of PHP5.6 billion (US$102.7 million) were issued to Summit Ascent Investments Ltd, by Suntrust. They are convertible into shares of Suntrust.

Summit Ascent said that the coupon interest amounted to PHP336 million (US$6.1 million at current exchange rates).

The Hong Kong-listed firm stated that Suntrust had “failed to pay the coupon interest” due on 30 December 2022, “after the lapse of a 15-day grace period provided under the terms of the 2020 convertible bonds”.

In its Friday filing, Suntrust noted: “Prior to the due date of the interest payment, Suntrust and Summit Ascent had been earnestly discussing the terms of the refinancing and/or restructuring of the 2020 convertible bonds.”

Suntrust is indirectly owned by LET Group Holdings Ltd, a Hong Kong-listed company, formerly known as Suncity Group Holdings Ltd.

Suntrust is developing the “main hotel casino” at the Westside City Project, located in Manila’s Entertainment City. According to information provided by the group, the project has a price tag of approximately US$1 billion, and should commence operation in 2024.

LET Group is also the controlling shareholder of Summit Ascent, the latter firm an investor in the Tigre de Cristal casino resort, near the Russian Pacific port of Vladivostok.