Analysts expect NagaCorp may have to refinance 2024 bonds

Morgan Stanley Asia made the analysis based on the expected pace of recovery in Cambodia’s gaming market.

Cambodia.- Morgan Stanley Asia has predicted that NagaCorp will refinance its 2024 bonds due to the expected slow pace of recovery in Cambodia’s gaming market. NagaCorp’s 2022 results showed gross gaming revenue up by 99.5 per cent year-on-year, but, Morgan Stanley analysts Gareth Leung and Praveen Choudhary said its fourth-quarter recovery was “muted” and that December’s run rate “could have been much stronger”.

They noted that the expected return of Chinese package tours in the second quarter of 2023 may help the company’s business but that refinancing of the 2024 bonds “seems likely” given the baseline pace of recovery. For 2023, Morgan Stanley estimates that NagaCorp’s net revenues will be around US$884m, with EBITDA reaching US$400m. 

In November, the company repurchased some of its senior notes due to mature in July 2024 and brought down the outstanding principal amount to US$472.2m. It said that repaying the 2024 senior notes using internal generated operating cash flow remains its top priority.