Hong Kong-listed NagaCorp, operator of Cambodian integrated resort NagaWorld, has launched an offer to repurchase up to US$120 million of 7.95% senior notes due 2024.
The notes form part of US$550 million in notes issued in 2020, of which NagaCorp has already repurchased and cancelled US$8.3 million in recent weeks. The outstanding balance is US$541.7 million.
In a filing, NagaCorp, which is in the process of developing Naga3, said, “The purpose of the Offer is to retire a portion of the outstanding 2024 Notes prior to maturity, and to enable the Offeror to manage its overall funding level and to reduce its gross debt and interest costs, while maintaining a prudent approach to liquidity.”
The company will pay a cash purchase price per US$1,000 of principal amount of the 2024 Notes validly tendered and accepted with a clearing price of not less than US$880, it added.
The move comes after Moody’s Investors Service recently warned that NagaCorp faces significant refinancing risks in the coming years as regulatory scrutiny and China’s junket crackdown slow the company’s COVID recovery trajectory.
Moody’s suggested NagaCorp would require external financing to repurchase the 2024 notes.
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