Macau: Studio City to issue additional senior notes

Studio City will issue additional senior notes to boost liquidity and raise cash for capital needs over the next 12 months.

Macau.- Studio City International Holdings has announced it will offer 5 per cent senior notes due in 2029 on the same terms as the notes issued in January when the company raised US$750m from the offering.

According to Moody’s Investors Service, Studio City hopes to use the net proceeds to boost liquidity and cash balance for the next months.

The pricing of the additional senior notes has yet to be announced, but Moody’s suggests an aggregate amount of US$300m. Analysts say the note offering should not affect Studio City Finance’s “B1″ rating.

Studio City plans to expand its Cotai casino complex and has recently received a seven-month extension to finish its phase 2 expansion at Studio City casino resort, putting the deadline back to December 27, 2022.

Sean Hwang, Moody’s assistant vice president and analyst, stated: “The tap issuance will boost Studio City Finance’s good liquidity, giving it a sufficient cash balance to cover its planned capital spending over the next 12 months.”