Listed hotel and recreation firm Leisure and Resorts World Corp. (LRWC) has issued P1.65-billion worth of preferred shares to bankroll existing projects in both its hotel casino and office businesses.
In a memorandum posted at the Philippine Stock Exchange, LRWC has sought the PSE’s approval to list P1.65 billion of its preferred shares and corresponding 82.5 million warrants. The board of the PSE approved it later on.
According to LRWC, the preferred shares have a coupon rate of 8.5 percent per annum and paid semi-annually. These preferred shares are cumulative, nonvoting and nonparticipating. Twenty preferred shares will entitle each investor to one warrant. Each warrant, if exercised at a price of P150 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 funds were used primarily to finance LRWC’s participation in the Belle Corp.’s City of Dreams Integrated Resort and Casino project, the renovation and capital expenditures for the Midas Hotel and Casino, the construction of the Techzone BPO building in Makati City, and the acquisition and roll-out of additional bingo sites, among others,” the listed firm told the local bourse.
LRWC is also working to issue another tranche of preferred shares worth P250 million that will be offered to the investing public and listed on the PSE by the first quarter of next year.