NagaCorp completes issue of US$200m in senior notes

NagaCorp has announced that its additional US$200m issue of 7.95 per cent senior notes has completed.

Cambodia.- NagaCorp has announced it has completed its issue of US$200m in 7.95 per cent senior notes.

The group had previously stated that after fees, commissions and expenses, the net proceeds would amount to US$211.6m.

The group will use the funds to strengthen the group’s working capital as well as for general corporate purposes.

NagaCorp profits have been deeply affected by the Covid-19 pandemic. The company has made layoffs and pay cuts.

NagaWorld has been closed since March due to a rise in Covid-19 cases. Although restrictions have been confirmed until June 16, it is still unknown if the casino venue will reopen its doors this week.

The company was heavily criticized by unions after announcing the layoff of almost 600 employees. 

According to the company, the layoffs are necessary due to the ongoing closure of its casino, but, according to local media, workers claims the layoffs are designed to reduce union presence in the workplace.

The casino operator said: “We believe that it is important for the Group to maintain operational and financial flexibility to ensure that it remains focused and efficient during this period. 

“To reduce the impact on our employees, we will provide affected employees with enhanced termination compensation over and above payments required by the applicable Cambodian laws to assist their transition into other career or business interests.” 

NagaCorp to fully recover by 2022

Moody’s Investor Service Inc has predicted NagaCorp’s revenue will reach 40 per cent of 2019 levels this year but won’t see a full recovery until 2022. Analysts said the recovery will depend on a reopening of NagaWorld in the second half of 2021.

According to Moody’s, the new notes will provide NagaCorp with “sufficient liquidity” to support its cash needs “over the next 18 to 24 months”.