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Naiade of Mauritius to Reduce Debt, Change Brand Name

(Corrects country where company owns hotels in third paragraph.)

Naiade Resorts Ltd. (NRL) will retire more than 1 billion rupees ($34 million) of debt over the next two years as it seeks to strengthen its financial position, Chief Executive Officer Paul Jones said.

The Mauritian resorts and leisure group will also change its brand name to LUX* Island Resorts from tomorrow as part of a restructuring, Jones said in an interview yesterday in Belle Mare, on the east coast of the Indian ocean island nation.

Naiade’s debt stands at 4.8 billion rupees, according to data obtained from the group, including 500 million rupees of convertible bonds. The owner and manager of hotels in Mauritius, Reunion Island and Maldives, posted an attributable loss of 120.4 million rupees in the three months through September against a 188.9-million rupee loss a year earlier.

“By June 2012 and 2013 the debt should go down by 600 million rupees and 500 million rupees respectively, and will be financed by cash that will be generated from operations,” Jones said. “We are ahead of the business plan presented last December. We are confident our results for the quarter ending 31st December 2011 will improve on last year.”

Tourism is one of the largest sources of foreign currency for Mauritius. The industry’s income for the nine months through September rose 7 percent to 30.15 billion rupees, according to Bank of Mauritius data.

Naiade was unchanged at 26.40 rupees at the close in Port Louis, the capital, yesterday and has gained 3.5 percent this year, according to data compiled by Bloomberg.

To contact the reporter on this story: Kamlesh Bhuckory in Port Louis at kbhuckory@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

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