Morgan Stanley: NagaCorp likely to refinance US$470m bond

According to analysts, the casino operators “planned capital expenditure is US$60m for second-half 2023 and US$20m for first-half 2024”.

Cambodia.- Analysts at Morgan Stanley Asia have reported that casino operator and developer NagaCorp is likely to refinance its US$470m bond issue set to mature in July 2024. They say NagaCorp’s planned capital expenditure for the latter half of 2023 is US$60m, followed by US$20m in the first half of 2024.

Moody’s Investors Service previously downgraded NagaCorp’s corporate family rating to ‘B3’ from ‘B2’ due to concerns about refinancing the US$472m bond set to mature in July 2024. However, analysts suggested that as the “refinancing overhang gets removed,” the company’s stock will regain its momentum, trading based on solid fundamentals. 

As of the end of the first half, the company had a cash reserve of US$242m and US$86m in half-on-half profits. Gross gaming revenue (GGR) was US$252.3m, up 57.4 per cent when compared to H1 in 2022. Net Profit was up 57.4 per cent to US$83m in year-on-year terms while earnings before interest, taxation, depreciation and amortisation (EBITDA) were US$143.2m, up 10.1 per cent. Total revenue was US$263m, up 9.8 per cent.

See also: NagaCorp pushes Naga 3 casino project back to 2029