Macau’s Studio City offering benchmark dollar-denominated tap of 5% notes due 2029

By Paul A. Harris

Portland, Ore., May 10 – Studio City International Holdings Ltd. is expected to price a benchmark dollar-denominated add-on to the Studio City Finance Ltd. 5% senior notes due 2029 (expected ratings B1/BB-) on Tuesday, according to market sources.

Initial price talk is in the 101 area.

Deutsche Bank is leading the deal.

The notes become callable in 2024.

Proceeds will be used to partially fund capital expenditures of the remaining project for Studio City and for general corporate purposes.

The original $750 million issue priced in January 2021.

Studio City Finance is a wholly owned subsidiary of Studio City International Holdings, which in turn counts Melco Resorts & Entertainment as its major shareholder with a 54.7% stake.

Studio City International last week revealed that it had been granted a seven-month extension to its government-imposed deadline to complete development of Phase 2 from May 17, 2022 until Dec. 27, 2022, according to a Monday press release from the company.

Melco revealed last August that it was unlikely to meet its previous Studio City deadline due to Covid-19 delays, the release added.

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