LRWC Raising P1.75 Billion From Private Placement Of Preferred Shares (mb.com.ph/January 24, 2013)

February 6, 2013

Leisure & Resorts World Corporation is planning to raise P1.75 billion through the private placement of perpetual preferred shares to fund its gaming projects including the Belle Grande Integrated Resort and Casino.

In a disclosure to the Philippine Stock Exchange, LRWC said proceeds of the preferred shares offer will be used to finance the acquisition of additional bingo sites, its Techzone project, as well as fund its share of the development cost of Belle Grande and the renovation of Midas Hotel.

LRWC said Asian Alliance Investment Corporation has been given the mandate by its board to provide financial advice as well as to manage the private placement and the offer.

The firm said the preferred share issuance is subject to the approval of its shareholders and the Securities and Exchange Commission of its planned increase in authorized capital stock to P5 billion from P1.6 billion.

The preferred shares will carry a dividend rate of 8.5 percent and will be sold at their par value of one peso per share. The shares are cumulative, non-voting and non-participating.

LRWC said a nil-paid, detachable warrant shall be issued to the buyers for every 20 preferred shares.

Each warrant shall entitle the holder to buy one LRWC common share at the exercise price of P15.00 per share or the weighted average trading price for three months before the exercise date of the warrant less 10 percent discount.

The warrants are exercisable starting on the fifth anniversary of the perpetual shares until the eighth anniversary.

LRWC said a maximum of 2.5 billion of its preferred shares and 125 million warrants will be listed on the PSE. If fully exercised, the warrants will be equivalent to 125 million common LRWC shares.

By James A. Loyola
January 24, 2013

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