Hong Kong-listed Summit Ascent Holdings Ltd is extending the maturity date of a US$120-million loan it provided earlier this year to sister company Philippine-based Suntrust Home Developers Inc. The agreement was announced on Tuesday.
As part of the deal for the extension, Summit Ascent is to subscribe next year to fresh convertible bonds issued by the Philippine firm, in the maximum aggregate principal amount of PHP6.4 billion, based on the amount lent to Suntrust.
Suntrust – which is in the process of changing its name to Suntrust Resort Holdings Inc – is developing a casino scheme (pictured in an artist’s rendering) in the Philippine capital Manila. The firm is controlled – via a 51-percent stake – by Hong Kong-listed Suncity Group Holdings Ltd. The latter is a firm led by Alvin Chau Cheok Wa, who also leads privately-held Macau casino junket brand Suncity Group.
Suncity Group Holdings is also the controlling shareholder of Summit Ascent, with a total stake of 69.66 percent in that company.
In a joint filing to the Hong Kong Stock Exchange on Tuesday, Summit Ascent and Suncity Group Holdings said that the former would extend the maturity date of the US$120-million loan to Suntrust from the existing maximum extended maturity date of November 18, 2021 to July 18, 2022. The decision still needs to be approved by the shareholders of Summit Ascent.
In addition, Summit Ascent agreed to subscribe for convertible bonds to be issued by Suntrust, in the maximum aggregate principal amount of PHP6.4 billion. As set by the agreement, the convertible bond subscription would work “as a form of guarantee” towards the indebted amount related to the US$120-million loan, said Summit Ascent.
Suntrust is developing the “main hotel casino” at the Westside City Project, located in Manila’s Entertainment City. According to information provided earlier this month by Suncity Group Holdings, the project has a price tag of approximately US$1 billion, and should commence operation in 2023, according to company information.
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”Our own consensus is that any newcomers to this [junket] sector should be corporatised, and should be financially sound and able to commit a higher guarantee deposit”
Kwok Chi Chung
President of junket trade body, the Macau Association of Gaming and Entertainment Promoters