Cambodian integrated resort operator NagaCorp has priced US$200 million of additional notes aimed at raising liquidity while NagaWorld in Phnom Penh remains closed due to COVID-19.
The additional notes were first mooted on Monday as part of a filing in which NagaCorp also confirmed it was in the process of substantial staff cuts, with NagaWorld’s closure having now extended beyond three months.
In a subsequent filing early Tuesday, the company said it had priced the additional notes at US$200 million 7.95% senior notes due 2024 to be consolidated with US$350 million original notes issued in July last year. The notes will not be convertible into shares.
NagaCorp explained that the additional notes Issue was being undertaken “to raise additional capital to strengthen the group’s working capital and for other general corporate purposes of the Company and its Restricted Subsidiaries.”
Net proceeds from the additional notes Issue after deduction of fees, commissions and expenses will amount to approximately US$211,553,500.
NagaCorp revealed Monday that it had cash and deposits of US$451.7 million as of 30 April 2021. Taking into account dividends of US$81.7 million due to be paid in July, the company said it has enough liquidity to survive for at least six months on minimal revenue before it may need to access the proceeds of the additional offering.