{"id":329979,"date":"2024-10-17T01:07:31","date_gmt":"2024-10-16T17:07:31","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329979"},"modified":"2024-10-17T01:07:32","modified_gmt":"2024-10-16T17:07:32","slug":"stock-in-focus-bloomberry-resorts-corp-bloom-17-oct-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-bloomberry-resorts-corp-bloom-17-oct-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: Bloomberry Resorts Corp. (BLOOM) – 17 Oct 2024 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>BLOOM<\/td><\/tr>
Company Name<\/strong><\/td>Bloomberry Resorts Corp.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>17 Oct 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 12.44<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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One of the ongoing concerns for BLOOM is the potential liquidity issue arising from the looming debt repayments, as the company recently spent a lot on its new Solaire North while cash flows are not improving as quickly as previously hoped due to general weakness in the discretionary spending segment. This refinancing agreement eases some of those concerns and bolsters our BUY call on BLOOM with a Target Price of P12.44\/share.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

BLOOM refinances loan facility at lower rate<\/strong><\/p>\n\n\n\n

BLOOM signed a P72.0-Billion syndicated refinancing facility, which would replace the existing P73.5-Billion syndicated term loan it obtained in 2018 and the P20.0-Billion additional term loan facility it obtained in December 2020 to get it through the pandemic. <\/p>\n\n\n\n

The refinancing agreement provides for a term of 10 years, or until October 2034. The final payment for the P73.5-Billion loan was supposed to come due in 2028, while the additional P20.0-Billion would have come due in tranches between 2025 and 2026. <\/p>\n\n\n\n

Further, the updated loan is priced 75 bps lower than the previous facilities and includes the option to fix rates in the next 12 months, with the original P73.5-Billion having an interest rate of 7.5% and the additional P20.0-Billion having a floating rate of 3M BVAL rate + 1.75% or 4.0% whichever is higher.<\/p>\n\n\n\n

Lower interest expenses to boost bottom line<\/strong><\/p>\n\n\n\n

Interest expenses accounted for around 15% of BLOOM\u2019s total pre-tax expenses since 2018. We estimate that this move to refinance its existing loans would save BLOOM around P700-Million per year and reduce its interest expenses by 12.4%. <\/p>\n\n\n\n

Translating this to the bottom line, we should see a 4.1% improvement in BLOOM\u2019s forecasted 4Q 2024 earnings and a 6.3% boost to its 2025 net income.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>