The operating entity of Macau integrated resort Studio City says it is looking to raise around US$750 million from a new senior notes offering announced earlier this week.
Studio City Finance Limited, a wholly-owned subsidiary of Studio City International Holdings Limited, priced its offering of senior notes overnight at US$750 million of 5.00% senior notes due 2029, which will be used primarily to fund a conditional cash tender offer for any and all of its outstanding 7.250% senior notes due 2024.
If any funds are left over they will be used “to partially fund the capital expenditures of the remaining project for Studio City and for general corporate purposes,” the company said. The new notes are being offered and sold in the United States to qualified institutional buyers.
It is the second major fund raising initiative by Studio City in the past six months after it completed a a US$500 million private placement of shares in August that saw its majority shareholder, Melco Resorts & Entertainment, boost its stake to 54.7%.
Studio City recently revealed that its Phase 2 development, set to include two hotel towers, a Cineplex, one of the world’s largest indoor water parks and additional gaming space, was unlikely to be completed by the May 2022 deadline under the terms of its land concession with the Macau SAR Government. The company has previously had its deadline extended by three years from 24 July 2019.