Gaming firm Leisure and Resorts World Corp. (LRWC) has raised P1.65 billion through a share sale to 10 private investors, bulk of which came from state-run Government Service Insurance System (GSIS) and Philippine Commercial Capital Inc. (PCCI).
LRWC disclosed through a filing with the Philippine Stock Exchange that GSIS, the country’s pension fund for public-sector employees, invested P800 million via its share sale of preferred shares where it raised P1.65 billion.
PCCI, on the other hand, invested P200 million in LRWC.
The fresh funds raised by LRWC will be used primarily for its participation in the Belle Grande Integrated Resort and Casino joint venture project of Belle Corp. and Hong Kong-based gaming firm Melco Crown Entertainment.
The rest of the proceeds will be spent for the construction, renovation and capital expenditures for the Midas Hotel and Casino, the construction of the Techzone Business Process Outsourcing building in Makati City and the acquisition and roll-out of additional bingo sites, among others.
“As part of LRWC’s commitment to its preferred share investors, LRWC is working to secure the necessary approvals from the Philippine Stock Exchange for the listing of the shares and the warrants,” the company said in its disclosure.
According to the gaming firm, the preferred shares have a coupon rate of 8.5 percent per annum and are paid semi-annually.
The preferred shares sold to the 10 investors are cumulative, nonvoting and nonparticipating.
“Twenty preferred shares will entitle each investor to one warrant,” LRWC explained, adding that each warrant, if exercised at a price of P15 or the average weighted trading price for the three months prior, whichever is lower, will be converted to one common share.
“This option will be exercisable starting on the fifth year,” the company further said.
LRWC’s wholly owned subsidiary, AB Leisure Global Inc., earlier signed an Omnibus Loan and Security Agreement with BDO Unibank Inc. for a P3-billion loan.
This amount partially funded the P4-billion payment to Belle Corp., which the latter will in turn use for the Belle Grande project.