Studio City Finance Ltd, the financing arm of the promoter of the Studio City casino resort in Macau, has completed the partial redemption of US$165-million of its outstanding 6.500-percent senior notes due in 2028, according to a Tuesday filing.
The company said in the announcement that the redeemed notes represented 33 percent of the aggregate principal amount of the US$500-million notes at the time of their initial listing. All of the redeemed notes have now been cancelled.
Following the cancellation of the redeemed notes, US$335 million of the 6.500-percent senior notes due in 2028 remain outstanding, according to the update.
Studio City Finance is the financing vehicle associated with Studio City, the casino resort in Macau’s Cotai district promoted by Melco Resorts & Entertainment Ltd.
The latest redemption comes as the Studio City group continues to reshape its debt profile.
In May, Studio City Co Ltd, another financing entity within the Studio City group, issued US$300 million of 6.125-percent senior secured notes due in 2031. The proceeds, together with cash on hand, were earmarked to refinance the group’s outstanding 7.00-percent senior secured notes due in 2027.
At the time, Moody’s Ratings assigned a ‘Ba3’ rating to the 2031 notes, saying it expected Studio City’s leverage to improve over the next two years as Macau’s gaming market continued to recover.
