Studio City International Holdings Limited has secured a HK$1.95 billion (US$250 million) Senior Revolving Facility with a syndicate of banks, which it says will be used to pay down existing debt.
The facility may be increased by another US$100 million, subject to the satisfaction of certain conditions, the company said in a filing.
The new facility is available for a term of five years and supported by a guarantee from the company, Studio City Investments Limited and various subsidiaries, it added.
In conjunction with the new Senior Revolving Facility, Studio City added that it has entered into an amendment and restatement agreement with Bank of China Limited, Macau Branch, among others, to align certain terms its existing facilities with the new facility. Those existing facilities currently represent HK$234 million (US$29.3 million) in commitments.
CBRE Credit Research recently issued a positive outlook for Studio City – one of two Cotai Strip IRs operated by Melco Resorts & Entertainment – given recent moves to pay down debt and reduce leverage.
After the company repurchased US$37.8 million worth of outstanding Senior Notes due 2025, CBRE analyst Colin Mansfield said he remained “satisfied with the property’s recovery and overall credit profile.
“Studio City’s more affordable retail footprint has helped foot traffic relative to Melco’s other luxury offerings when considering the challenged Chinese macro backdrop,” he said at the time. “In addition, mass table count [in 2Q24] rose quarter-on-quarter and posted an average daily win of US$13,300 (albeit with slightly higher hold).
“This marks the fourth consecutive quarter that mass table win per day exceeded US$10,000 and the third consecutive quarter it exceeded 2019 productivity levels.”
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