Suntrust renegotiates bond interest payment terms with Summit Ascent

Suntrust Resort Holdings is renegotiating the payment arrangement of the overdue interest on convertible bonds issued in 2020 to a unit of Hong Kong-listed Summit Ascent.

The Philippine-listed subsidiary of the Suncity group failed to pay interest on the P5.6 billion convertible bond issued to Summit Ascent on December 30, 2020.

The convertible bond had a coupon rate of six percent per annum payable yearly in arrears, and has an initial term of five years from issue, extendable for a further term of five years.

Suntrust said it has been accruing interest due and the accrual as of September 30, 2022 amounted to P295.5 million.

The company said prior to the due date of the interest payment, it has been earnestly discussing the terms of the refinancing and/or restructuring of the 2020 convertible bond with Summit Ascent.

“While no definite agreement has been executed as of date, SUN believes that an agreement on the terms of such refinancing/restructuring should be forthcoming,” Suntrust said.

Summit Ascent operates the Russian integrated resort Tigre de Cristal in Vladivostok while Suntrust is developing a casino hotel in the Westside City project located in Pagcor’s Entertainment City.

Targeted to be operational by 2024, the casino hotel is estimated to cost $1 billion.

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