Suntrust Resort Holdings Inc said Friday its Board of Directors has given the green light for the company to negotiate and enter into a loan facility with China Banking Corporation for up to Php25 billion (US$446 million).
According to details filed with the Philippine Stock Exchange, any such deal would comprise the execution of an Omnibus Loan and Security Agreement with the bank and other relevant parties, consisting of a Loan Facility Agreement, a Mortgage Agreement, a Security Agreement, a Suretyship Agreement and a Project Accounts Agreement, among others.
The Board of Directors will also appoint its Chairman, Andrew Lo Kai Bong, and President, David Chua Ming Huat, as the company’s authorized signatories for the transaction.
If secured, the loan facility would likely go a long way towards ensuring completion of Suntrust’s US$1 billion hotel and casino development in Manila – part of the larger Westside City project currently under construction in Entertainment City.
It also comes just weeks after Suntrust agreed to a separate US$6 million loan from Lo. Suntrust said previously it was seeking a potential loan facility in order to complete its Manila project which would involve putting up “all or substantially all” of its assets and properties as collateral.
The project is slated to incorporate a 450-room hotel with a casino boasting 400 gaming tables and 1,200 slot machines.
In a separate filing on Monday morning providing further information on the loan facility, Summit Ascent Holdings – a fellow subsidiary of the companies’ parent LET Group Holdings – revealed its own subsidiary, SA Investments, would provide financial assistance to Suntrust via security and project support.
These are to include, by way of a security agreement, a first charge and assignment to the lender of all present and future convertible issued by Suntrust to SA Investments, and of all shares in Suntrust held now or in the future by SA Investments.
SA Investments will also be required to provide support to ensure the timely completion of the hotel and casino project and to provide funding on any cost overruns.
Explaining the reasons for offering such support, Summit Ascent – whose main business interest is its majority stake in Russian casino-resort Tigre de Cristal – said, “Facilitating the completion and opening of the Main Hotel Casino is essential to the Group in securing a return on its investment.
“The Financial Assistance helps in the obtaining of the Loan Facility by Suntrust from the Lender required for the development and completion of the Main Hotel Casino. Otherwise, Suntrust may not be able to secure adequate funding for the Main Hotel Casino and the Group is unlikely to be able to recuperate its investment in Suntrust.”
Suntrust has previously stated it expects to open the Manila hotel and casino by late 2024, although under the terms of the loan facility, funds will continue to be drawn down through October 2025.
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