By Jenniffer
B. Austria | Posted on Jul. 05, 2013 at 12:02am |
[
manilastandardtoday.com ]
State-run
pension fund Government Service Insurance System has invested P800 million in
Leisure & Resorts World Corp., which is building a new casino in Parañaque
City.
Leisure &
Resorts World said Thursday it raised P1.65 billion from the sale of preferred
shares to investors, including GSIS.
The casino
operator said in a disclosure to the stock exchange the GSIS subscribed to P800
million worth of preferred shares, while Philippine Commercial Capital Inc.
bought P200 million.
The preferred
shares have a coupon rate of 8.5 percent annually and are to be paid
semi-annually.
Leisure &
Resorts World said the shares were
cumulative, non-voting and non-participating.
The company
said subscribers to the preferred shares would be entitled to 1 warrant share
for every 20 preferred shares acquired. Each warrant, if exercised at a price
of P15, or the average weighted trading price for the three months prior
(whichever is lower), will be converted into one common share.
The option
will be exercisable starting in the fifth year.
Leisure &
Resorts said it would use proceeds from the sale of preferred shares to finance
its participation in the Belle Grande Integrated Resort and Casino project, the
construction, renovation and capital expenditures of the Midas Hotel and
Casino, the construction of the Techzone BPO building in Makati City, and the
acquisition and rollout of additional bingo sites.
The company’s
wholly-owned unit AB Leisure Global Inc. signed a P3-billion loan agreement
with BDO Unibank Inc. in May.
The amount
partially funded the P4-billion payment to Belle Corp., which it would use for
the Belle Grande Integrated Resort and Casino project that is expected to open
by July next year.
AB Leisure
has economic interest in the casino project, which entitles it 30 percent of
the fixed yearly income generated from the lease of all commercial spaces in
the casino project. These spaces include hotel, retail, and casino premises.
AB Leisure
will be paid fees equivalent to 30 percent of the 50-percent share of Premium
Leisure and Amusement Inc. from the casino operations, or 30 percent of PLAI’s
15-percent share of net wins.
PLAI is a
wholly-owned subsidiary of Belle Corp., which has obtained a license from
state-run Philippine Amusement and Gaming Corp. to operate an integrated resort
and casino project in the Pagcor Entertainment City complex.
The
$1.2-billion Belle Grande is located on a 6.2-hectare property with a gross
floor area of 300,000 square meters.
The project
will contain 20,000 square meters of gaming space, six hotel towers with a
total of 950 rooms and a number of high-end bars and restaurants.
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