NagaCorp raises $290m in notes issue

NagaCorp said it has raised $290 million net through a senior note issue to promote growth in its VIP business and to upgrade facilities.

The company said in a Hong Kong Stock Exchange filing that it has entered into a purchase

agreement with Credit Suisse and Morgan Stanley for the issue of $300 million 9.375 percent senior notes due 2021. These notes will not be convertible into NagaCorp’s shares.

The company said the proceeds will be used to promote growth of its gaming business and in particular that of the VIP sector. It also plans to refurbish hotel rooms in Naga1.

The company operates the NagaWorld resort in Phnom Penh, Cambodia. It has a monopoly on a casino license within a 200km radius of the capital.

Last year it opened the second phase of the resort, Naga2, which has significantly boosted VIP traffic.