An offer by NagaCorp Ltd to repurchase up to US$120 million of of its outstanding US$541.7 million notes due in July 2024 is unlikely to help the company avoid a default when the remaining notes fall due, according to Moody’s Investors Service.
NagaCorp, which operates integrated resort NagaWorld in Phnom Penh, Cambodia, announced its offer on Friday, stating the purpose of doing so was to enable the company “to manage its overall funding level and to reduce its gross debt and interest costs, while maintaining a prudent approach to liquidity.”
While Moody’s called the offer opportunistic rather than a distressed exchange, it added that the size of the tender offer – up to 22% of the outstanding notes – is unlikely to support NagaCorp in avoiding a default given that US$421.7 million in notes will remain outstanding.
