Key points:
- Summit Ascent intends to subscribe to Suntrust's bonds worth up to PHP8.63bn ($156.3m)
- Proceeds will go towards construction costs of the Manila hotel-casino
- The transaction is classified as major and connected, requiring shareholder approval
Summit Ascent Holdings has proposed a subscription to convertible bonds issued by Suntrust Resort Holdings, aimed at providing additional funding for an integrated resort project underway in Manila.
The proposed bond issue totals up to PHP8.63bn and may be subscribed in one or more tranches. The capital raised will support the ongoing development of Suntrust’s Entertainment City resort, which is scheduled to commence operations in the final quarter of 2025.
The convertible bonds will carry no interest and have an eight-year term, with an option for a two-year extension. They are convertible into Suntrust shares at a price of PHP1 each, which is above the company’s recent closing price. The funds are expected to help bridge the remaining financing requirements for the resort, which has seen approximately 55% of its budget already committed.
As LET Group Holdings maintains ownership stakes in both Summit Ascent and Suntrust, the transaction is considered both a major and connected transaction under Hong Kong listing regulations. As a result, it will be subject to approval by independent shareholders, with related parties abstaining from the vote.
Summit Ascent has stated that the subscription aligns with its long-term investment strategy, while also allowing for the potential to increase its equity interest in Suntrust should the bonds be converted. The company’s shares remain suspended from trading pending compliance with Hong Kong Exchange resumption guidelines.
