Casino op NagaCorp repurchases fraction 2024 senior notes

Aug 15, 2022 Newsdesk Latest News, Rest of Asia, Top of the deck  

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Cambodian casino operator NagaCorp Ltd says it has repurchased “on the open market” a small portion of some senior notes due to mature in July 2024.

In a Friday filing to the Hong Kong Stock Exchange, the company said the exercise – conducted between August 9 and 10 – involved an aggregate principal of US$1.6 million, representing circa 0.29 percent of the US$550-million principal of the 7.95-percent notes.

“The company will continue to monitor the market conditions and its financial structure and may further repurchase the outstanding 2024 senior notes as and when appropriate”, it said.

NagaCorp has a long-life casino monopoly for the Cambodian capital, Phnom Penh, where it runs the NagaWorld complex (Naga 2, pictured).

NagaCorp made a US$52.7-million profit for the first half this year, compared to a US$77.2-million loss for the first half 2021. The NagaWorld complex was closed for much of the opening six months of 2021, as a Covid-19 countermeasure.

The company had announced in early June last year it was to issue 7.95-percent senior notes in the aggregate principal amount of US$200 million, with a July 6, 2024 maturity.

The notes, which are not convertible into shares, were to be consolidated and form the same series as the US$350-million notes issued in 2020.

Moody’s Investors Service Inc had stated in a June 2021 memo that the fresh notes – combined with those issued in 2020 – ought to provide NagaCorp with “sufficient liquidity” to support its cash needs “over the next 18 to 24 months”.

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