Studio City Company Limited has priced $300 million in senior secured notes due in 2031 at a rate of 6.125%. The notes issued at 100% of their face value, as detailed in a recent company announcement.
Refinancing Strategy
The company, a wholly-owned subsidiary of Studio City International Holdings Limited, intends to apply the proceeds from this offering, combined with available cash, to repurchase its outstanding 7.00% senior secured notes due in 2027. This repurchase occurs through a conditional cash tender offer lnched earlier this week. Any remaining 2027 notes will undergo full redemption.
Ranking and Guarantees
The new notes hold equal ranking with all existing and future senior indebtedness of Studio City Company. However, the company’s $30 million senior secured credit facilities maintain priority over these notes in proceeds from enforcement actions on shared collateral. The notes rank senior to all existing and future subordinated indebtedness.
Guarantees for the notes come on a senior secured basis from Studio City Investments Limited and its existing subsidiaries, excluding Studio City Company itself. Neither Melco Resorts & Entertainment Limited nor Studio City International Holdings Limited provides guarantees.
Offering Terms and Tender Details
These notes target qualified institutional buyers in the United States under Rule 144A of the Securities Act of 1933 and non-U.S. persons outside the country under Regulation S. Registration under the Securities Act has not occurred.
The related tender offer for the 2027 notes expires at 5:00 p.m. New York time on Tuesday, with settlement expected by May 15, 2026. Validly tendered notes qualify for payment of $1,001.25 per $1,000 principal amount.
These actions demonstrate Studio City Company’s strategic approach to managing its debt portfolio effectively.
