NagaCorp proposes to offer new notes

Casinos remain closed in Cambodia since the beginning of April
Casinos remain closed in Cambodia since the beginning of April

The group’s founder has announced he will personally fund up to US$45 million of the new notes to gain liquidity.

Cambodia.- NagaCorp’s finances have been severely hit due to lockdown measures related to the Covid-19 pandemic. The company has now detailed a plan to gain enough liquidity to operate for up to 18 months with minimal revenue.

Casinos have been closed in Cambodia since the beginning of April, and NagaCorp has faced protests from workers demanding the company pay part of their salaries.

In order to regain liquidity in its finances, the group is now proposing an international offering of non-convertible notes to investors in Asia and Europe.

The goal, according to a filling submitted to the Stock Exchange of Hong Kong, is to “redeem some or all of the outstanding 2021 notes (and any accrued interest, costs, charges, premiums and expenses and other amounts incidental to repayment of the 2021 Notes) on or prior to maturity in 2021, and general corporate purposes”.

NagaCorp founder, Tan Sri Dr Chen Lip Keong, has committed to subscribe for up to US$45 million of the new notes, the company said.

The group said there would be no public offer of the notes either in the United States or in Hong Kong.

The group is currently operating its Naga 1 hotel with reduced occupancy rates, and limited food and drink facilities. The Naga 2 hotel is currently closed. Duty free operations at NagaCity Walk remain in operation.

The group said it expected to continue taking action to minimise cash expenditure, including  scaling back hotel and food and drink operations, reducing payroll expenses by limiting staff on site and reducing employee pay.

It hopes to reduce operating costs to a monthly run-rate of US$3.9 million. It says that with the new note offering, this would give the company liquidity to support operations with minimal revenue for about 18 months.

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cambodia Finances NagaWorld