NagaCorp plans to repurchase up to US$120m in senior notes due in 2024
Repurchasing the shares is intended to help the company manage overall funding, reduce interest costs and maintain prudent liquidity.
Cambodia.- The casino operator and developer NagaCorp has announced plans to repurchase up to US$120m in senior notes due in 2024. The notes are part of US$541.7m issued in 2020.
The company said it intends to retire a portion of the outstanding 2024 notes before maturity to manage its overall funding level and reduce gross debt and interest costs while maintaining a prudent approach to liquidity.
NagaCorp said it will pay a cash purchase price per US$1,000 of principal amount validly tendered and accept a clearing price of not less than US$880. Noteholders may submit one or more competitive offers on or prior to November 11. Settlement will take place on or around November 17.
See also: NagaCorp posts GGR of US$106.6m for Q3
According to the company, ChenLipKeong Capital Ltd. holds an aggregate principal amount of US$45m of the 2024 notes. ChenLipKeong Capital Ltd. is directly and wholly owned by The Sakai Trust, a family trust established by Tan Sri Dr Chen Lip Keong, NagaCorp’s founder and senior chief executive, for purposes of succession planning.
Moody’s downgrades NagaCorp corporate family rating
Moody’s Investor Services downgraded the corporate family rating of NagaCorp Ltd due to a slower-than-expected operational recovery. It believes the company will likely require external financing to repay its outstanding US$545m bond maturing in July 2024.
Moody’s downgraded its senior unsecured rating of NagaCorp’s US dollar bond from ‘B1’ to ‘B2’. It added that its rating outlook for the casino operator remained ‘negative’. Analysts said that while NagaCorp expected to generate sufficient operating cash flow to support its liquidity needs through June 2024, the casino operator may require external financing to repay its dollar bonds.
