Leisure & Resorts World Corporation (LRWC, PSE: LR) has announced that its wholly owned subsidiary AB Leisure Global Inc. executed an Omnibus Loan and Security Agreement (OLSA) in the amount of PhP3 billion with BDO Unibank Inc. (PSE: BDO) as the Lender. BDO Unibank Inc. – Trust and Investment Group signed on as the Security Trustee. Since AB Global is a wholly owned subsidiary, LRWC acted as a Surety to the commitment.
Seated Front Row L-R: Ador Abrogena, EVP & Head, BDO Trust & Investment Group; Reynaldo Bantug, Chairman & President, LRWC; Walter Wassmer, Senior EVP, BDO Unibank; Atty. Bienvenido Santiago, Director, LRWC; Edmundo Soriano, EVP, BDO Unibank; Susan Atienza, VP, BDO UnibankSecond Row: Celine Lim, CFO, ABLGI; Princess Chan, Treasurer, LRWC; Jasper Vicencio, Corporate Planning, LRWC; Jose Ramon Garcia, Sr. Asst. VP, BDO Unibank; Atty. Fred Leong, GSE Law Firm; Freddie Reyes, Investor Relations, LRWC; Atty. Katrina Nepomuceno, Corp. Counsel, LRWC; Atty. Loy De Leon, Jr. Partner, GSE Law; and Kathleen Lindaya, Asst. VP, BDO Trust & Investment Group.
This loan agreement was negotiated to partially fund AB Global’s commitment and contribution to the Belle Grande Integrated Casino Resort project. This investment is pursuant to the Agreements that were already disclosed last 29 October 2012 and 13 November 2012, wherein AB Global will have an economic interest in the Belle Grande project.
As was also discussed in those agreements, AB Global shall be entitled to 30% of the fixed yearly income generated from the lease of all commercial spaces in the project. These spaces include the hotel, retail and casino premises. Furthermore, AB Global shall be paid fees equivalent to 30% of the 50% share of Premium Leisure and Amusement Inc. (PLAI) on the EBITDA from casino operations or 30% of PLAI’s 15% share of the Net Win, whichever is higher, after deducting PLAI’s Royalty, which is based on Gross Win. PLAI is the wholly-owned subsidiary of Belle Inc. that has the PAGCOR casino license.