Leisure & Resorts to raise P1.75 billion from sale of preferred shares (interaksyon.com/January23, 2013)
February 6, 2013
MANILA – Leisure & Resorts World Corp (LRWC) will issue preferred shares to finance an integrated casino complex the company and Belle Corp are putting up at the reclaimed Manila Bay area.
In a disclosure to the Philippine Stock Exchange, LRWC said it will sell through a private placement P1.75 billion worth of perpetual preferred shares that carry a dividend rate of 8.5 percent.
The preferred shares are cumulative, non-voting and non-participating.
LRWC has the option to redeem the preferred shares in whole or in part on the fifth anniversary at a redemption price equal to the issue price plus cumulated and unpaid cash dividend.
Investors will be entitled to a nil-paid detachable warrant for every 20 preferred shares they will buy, with each warrant entitling them to purchase one common share.
Given to shareholders at no cost to them, a nil-paid warrant provides the right to acquire additional shares in the company. When exercised, the shareholder however would have to pay for the actual shares acquired.
LRWC said the proceeds of the fund-raising will be used to finance the acquisition of additional bingo sites, the Techzone project In Makati, the Midas Hotel along Roxas Boulevard and the Belle Grande Integrated Resort and Casino project at the Entertainment City project of state-owned Philippine Amusement and Gaming Corp.
LRWC’s wholly owned subsidiary AB Leisure Global Inc will help Henry Sy-led Belle finance the casino project in exchange for a 30 percent interest in the venture.
Belle originally tapped LRWC as operator of the hotel and casino project, but has since turned over this role to Macau casino operator Melco Crown Entertainment Ltd.
LRWC’s preferred shares will be taken out of the pending increase in its authorized capital stock from P1.6 billion to P5 billion. The increase involves 2.5 billion shares of common stock and 2.5 billion preferred shares, each with a par value of P1 per share.
Asian Alliance Investment Corp was mandated to provide financial advice as well as manage the private placement and offering.
Category: In The News