NagaCorp secures US$80 million loan from major shareholder

“Dr. Chen Lip Keong, the majority shareholder of NagaCorp, the company that runs the integrated resort NagaWorld in Cambodia, has agreed to lend the company $80 million. The company’s restricted sources of liquidity and lack of bank facilities have prompted Moody’s Investors Service to express worry about the maturity of existing notes due in 2024, which will be addressed with this loan.

Dr. Chen, whose family trust, The Sakai Trust, owns 69.26% of NagaCorp, is offering an unsecured loan with an annual interest rate of 8%. It is meant to be used only for refinancing and part of the 2024 Notes’ maturity disbursement.

With attractive terms and affordable finance costs, NagaCorp thinks this loan will improve its cash situation. After examining a number of other financing sources, the conditions of the loan were negotiated at arm’s length. When the 2024 Notes mature in July 2024, the firm is certain that the loan and its current cash resources will be enough to cover its financial commitments.

Prior to this, NagaCorp had given assurances about its capacity to fulfill these commitments, pointing to enhanced financial reserves brought about by better operational circumstances at NagaWorld. The firm announced a 12.1% year-over-year gain in gross gaming revenues in the first nine months of 2023, reaching $379.0 million. Additionally, it recorded a 17.4% growth in adjusted EBITDA to $215.4 million, mostly attributable to the premium gaming sectors’ comeback.

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Original story by: IAG”