Studio City Co Ltd is issuing US$300 million worth of 6.125-percent senior secured notes due in 2031. The proceeds from the proposed bond issuance will be used – along with cash on hand – to refinance its outstanding secured notes maturing in 2027, the company said on Thursday.
Studio City Co is a wholly-owned subsidiary of Studio City International Holdings Ltd. The latter is majority-controlled by international casino developer Melco Resorts & Entertainment Ltd, which holds a stake of about 55 percent.
Moody’s Ratings has assigned a ‘Ba3’ rating to the notes.
“We expect Studio City’s adjusted debt/EBITDA [earnings before interest, taxes, depreciation and amortisation] will decrease to about 6.3 times in 2026 from 7.2 times in 2025, and further improve to 5.7 times in 2027,” the ratings agency said.
It added: “This improvement is driven by the continued growth of Macau’s gaming market, as well as Studio City’s maintenance of a solid market share and debt reductions.”
