Studio City Reclaims $37.6 Million in Senior Notes Amidst Debt Restructuring in Macau’s Casino Scene
Macau, December 13, 2024 — In a significant financial maneuver, Studio City Finance Ltd, the financing subsidiary of Studio City International Holdings Ltd, revealed in a regulatory filing on Thursday that it has repurchased nearly $37.6 million of its outstanding 6.000-percent senior notes due in 2025. This transaction occurred in Macau’s vibrant Cotai district, home to the renowned Studio City casino resort.
The repurchased notes accounted for approximately 7.5 percent of the initial aggregate principal amount of these bonds at the time they were listed on the Singapore Exchange. Following the repurchase, the company confirmed that these notes have been officially canceled.
Melco Resorts & Entertainment Ltd, a key player in the casino industry, serves as the majority owner of the Studio City resort. The recent financial move is considered part of a broader strategy to manage debt more effectively.
Earlier this month, Studio City International Holdings made headlines again when its other subsidiary, Studio City Co Ltd, successfully secured revolving credit facilities amounting to nearly HKD 1.95 billion (approximately $250.8 million) for a five-year term. This financial strategy is part of the company’s efforts to enhance its liquidity and operational flexibility.
In the third quarter of 2024, Melco Resorts reported noteworthy insights into their financial health. The casino brand stated that its total group debt stood at $7.17 billion as of September 30, reflecting a decrease of approximately $57 million from the previous quarter. This reduction was largely attributed to the repurchases of the 6.00 percent senior notes due in 2025, executed by Studio City Finance Ltd, highlighting a concerted effort to optimize capital structure and reduce interest obligations.
As the casino industry continues to navigate the complex landscape following the pandemic, such strategic financial actions could signal a shift towards increased stability and growth for the Studio City resort and its parent companies.
For more updates on the intricacies of the casino and entertainment industry, stay tuned as developments unfold in Macau and beyond.