Studio City International Holdings Limited, the parent company of Macau integrated resort Studio City, has revealed a number of new initiatives aimed at raising funding for the completion of Studio City Phase 2.
The company issued a series of announcements early Tuesday (Macau time) in which it first outlined plans to conduct an international offering of senior secured notes, with pricing yet to be determined.
Proceeds from the notes, it said, “will be used to partially fund the capital expenditures of the remaining project for Studio City and for general corporate purposes.”
Studio City also revealed it will raise around US$300 million after entering into subscription agreements with existing institutional holders of its ordinary shares and American Depositary Shares, who combined hold more than 99% of all outstanding shares.
One of those is Studio City’s controlling shareholder Melco Resorts & Entertainment, which revealed via a separate announcement that its subsidiary MCO Cotai Investments Limited has subscribed to 220 million of those shares or US$165 million worth.
Coming at a cost of US$1.3 billion and designed by Zaha Hadid Architects – the same firm that designed Morpheus at City of Dreams Macau and co-designed Melco’s Yokohama integrated resort concept – Studio City Phase 2 is due to open in December 2022. The company held a topping off ceremony in November.
When complete, Phase 2 will add around 250,000 square meters in total gross floor area including an additional 2,300 square meters of gaming space, 21,000 square meters of retail, a children’s play zone for families and a new food street offering a selection of cuisines from Asia. It will also offer one of Asia’s largest indoor and outdoor water parks, a six-screen Cineplex comprising two regular houses and four VIP suites, as well as a state-of-the-art MICE space.
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