A unit of Studio City International Holdings Ltd, promoter of the Studio City casino resort in Macau, has signed a new senior facility agreement with a syndicate of banks, according to a Monday press release.
Under the terms of the agreement, the lenders have made available to Studio City Co Ltd just under HKD1.95 billion (US$250.0 million) in revolving credit facilities for a term of five years.
Macau concessionaire Melco Resorts & Entertainment Ltd controls Studio City International Holdings and runs the gaming operations at the Studio City property (pictured).
The announcement said the fresh credit facility agreement “also provides an option to increase the commitments under the senior revolving facility in an amount not exceeding US$100 million, for Studio City Co to incur further indebtedness under the senior revolving facility, subject to the satisfaction of certain conditions”.
Studio City International stated that it intends to use the proceeds from the senior revolving facility “to refinance outstanding indebtedness and for general corporate and working capital purposes”.
The release also said that Studio City Co has amended an agreement with its lenders – including Bank of China Ltd, Macau Branch – in relation to the senior secured term loan and revolving facilities agreement dated March 15, 2021. The existing credit facility currently represents HKD234.0 million of the group’s committed facilities, it added.
The amendment was to “align certain terms” of the existing credit facilities with the terms of the new agreement, said Studio City International.
