Philippines-listed Suntrust Resort Holdings Inc, which is currently developing a US$1 billion hotel and casino in Manila’s Entertainment City, has issued US$120.9 million worth of convertible bonds to Hong Kong’s Summit Ascent Holdings in lieu of repaying a loan.
The bonds relate to US$127.7 million owed to Summit Ascent for a loan provided early last year to facilitate development work on the hotel and casino project. Summit Ascent had previously extended the maturity date on that loan by nine months until 18 June 2022, but the two companies revealed on Monday that the majority of the original US$122.5 million amount plus interest has instead been repaid in the form of convertible bonds. The remaining US$6.8 million has been repaid in cash.
According to a Philippine Stock Exchange filing by Suntrust, which earlier this month changed its name from Suntrust Home Developers, the bonds would represent a 16.98% stake in the company if fully converted.
Hong Kong-listed Suncity Group currently owns a 51.28% stake in Suntrust and is majority owner of Summit Ascent with a 69.66% interest. Summit Ascent itself holds a controlling 77.5% stake in Oriental Regent Ltd, the owner and operator of integrated resort Tiger de Cristal in Vladivostok, Russia.
Due to open in 2023, Suntrust’s Manila casino project is part of the larger Westside City development and will incorporate a 450-room hotel with a casino boasting 400 gaming tables and 1,200 slot machines.