Suntrust Resort Holdings, a subsidiary of Hong Kong-listed LET Group Holdings (previously known as Suncity Group Holdings), is pursuing a PHP25 billion ($447 million) loan to fund the development of its Westside City integrated casino in the Pagcor Entertainment City complex along Manila Bay.
The company’s board has approved plans to negotiate the loan deal with Sy family-led China Banking Corp, according to a Philippine Stock Exchange filing. “The loan facility will redound to the benefit of the company as the proceeds are intended to fund project costs and the construction of the main casino project,” Suntrust said.
The approval covers the execution of an omnibus loan and security agreement with the bank. Suntrust Chair Lo Kai Bong and President Chua Ming Huat were designated as authorized signatories for the deal.
Last August, LET Group told shareholders that it was committed to “long-term investment in the Philippines” through the Westside City casino project. Suntrust, partly owned by billionaire Andrew Tan’s Megaworld, earlier announced a target to open the Westside City casino in 2024. The project will be the fourth gaming complex in Entertainment City after Solaire Resort & Casino, City of Dreams Manila, and Okada Manila.
The $1 billion casino hotel will feature a 450-room five-star hotel, over 300 gaming tables, and more than 1,300 electronic gaming machines when fully operational by 2025.
Alvin Chau
The former Suncity Group was previously led by ex-junket boss Alvin Chau, who was arrested in 2021 and sentenced in January this year by a Macau court to 18 years in prison for illegal gambling operations.
Earlier this year, Suntrust said it was in talks with creditors to restructure debts after it failed to make interest payments on the PHP5.6 billion ($100,208) bonds issued to affiliate Summit Ascent Investments Ltd. last December 30, 2020.
The debt paper has a coupon rate of 6% per annum and can be converted to 3.11 billion shares at a price of PHP1.80 ($0.032) each. The shares are equivalent to about 30% of Suntrust.
Original article: https://www.yogonet.com/international/news/2023/06/14/67517-suntrust-seeking-447m-loan-from-china-bank-to-fund-casino-development-in-manila-bay
