HK firm buys Suntrust bonds worth ₧5.6B
Suntrust Home Developers Inc., which will operate Andrew tan's integrated resort and casino in Entertainment City, on Monday said it has entered into a deal with Hong Kong-listed Summit Ascent Investments Ltd. for P5.6 billion worth of convertible bonds.
Summit said it agreed to subscribe to the bonds that carries a 6-percent coupon rate.
“the foregoing transaction will support the development of the main hotel casino, a five-star hotel and casino project to be constructed at Manila Bayshore Integrated City in Parañaque City,” the company said in its disclosure.
Suntrust is 51 percent owned by Fortune noble, a wholly-owned subsidiary of Suncity Group Holdings Ltd., which is listed at the Hong Kong Stock Exchange.
Summit Ascent, meanwhile, is a wholly-owned subsidiary of Summit Ascent Holdings Ltd, a listed company on the HK Stock Exchange. Suncity Group holds approximately 24.74-percent direct and indirect interest in SA Holdings.
Fortune noble on Monday also agreed to subscribe to some P7.3 billion in zero coupon convertible bonds that Suntrust will issue. Proceeds will also go to the hotelcasino development.
Suntrust earlier in May has already signed an agreement to operate and manage the main hotel casino, to be developed at Manila Bayshore Integrated City in Parañaque.
“the O and M [operation and management] agreement takes effect upon its execution on May 4, 2020, and has a term of until July 11, 2033, and shall be automatically extended or renewed, unless terminated earlier in accordance with the provisions of the O and M agreement,” it said.
the said deal is part of the series of transactions that it signed October last year between Suntrust and Westside.
Westside, as co-licensee of tan's travellers International Hotel Group Inc., holds the license issued by the Philippine Amusement and Gaming Corp. for the operation of at least $1 billion worth of integrated resort and casino. It may enter into any agreement or contract for the operation and management of the main hotel casino.