Studio City Company Limited, a subsidiary of Studio City International Holdings Limited, has proposed to conduct an international offering of senior secured notes, to be used to repurchase any and all outstanding 7.00% senior secured notes due 2027.
The company has also announced a tender offer for those senior secure notes, which is due to expire at 5pm New York time on 12 May.
In a filing, Studio City Company said the interest rate and other terms of the new notes will be determined at the time of pricing of the notes offering.
S&P Global Ratings subsequently assigned a “B+” long-term issue rating to the proposed senior secured notes, adding that it expects Studio City’s debt-to-EBITDA ratio to remain unchanged following the tender and call of its US$350 million 2027 senior secured notes.
“We therefore regard the transaction as neutral for the group’s leverage,” S&P said. The ratings agency highlighted that, as of 31 March 2026, the capital structure of Studio City Finance Ltd – Studio City’s financing parent – included around US$1.6 billion in senior unsecured notes, US$350 million in senior secured notes and US$70 million in secured credit facilities.
“Following the notes issuance, we expect Studio City’s priority debt ratio to remain at 21%, well below our 50% threshold to consider notching down the rating,” it added.
The core asset of Studio City International Holdings Limited is Macau integrated resort Studio City, located on the Cotai Strip. It is one of three Macau IRs under Melco Resorts & Entertainment, which holds almost 55% of Studio City International Holdings Limited.
MGM China and Las Vegas Sands have also proposed similar senior notes offerings over the past few days.
