Studio City Finance Limited, the subsidiary of Studio City International Holdings that developed Macau integrated resort Studio City and operates its non-gaming businesses, has announced a proposed international offering of senior notes and a subsequent tender offer.
In an SEC filing, Studio City Finance said that net proceeds from the Notes Offering will be used to fund its Conditional Tender Offer, to redeem in full any existing notes which remain outstanding, to pay all associated fees and costs and for general corporate purposes including working capital and debt repayment.
The notes would be general obligations of Studio City Finance, “ranking equally with all of Studio City Finance’s existing and future senior indebtedness.” Interest rates and terms are yet to be determined.
Studio City Finance added that it has already initiated its conditional cash tender offer for any and all of its outstanding 8.500% senior notes due 2020.
The Conditional Tender Offer is conditional upon, among other things, the successful completion by Studio City Finance of “one or more” debt financing transactions which, alongside cash on hand, would give it the required funding.
The conditional tender offer will conclude on 4 February 2019.
The Macau government last year granted Melco Resorts, the majority owner of Studio City International Holdings, a deadline extension until 24 July 2021 for its planned development of Studio City Phase 2 which is expected to be comprised entirely of non-gaming offerings.
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