Studio City prices $300M in senior secured notes to retire 2027 debt

What's the deal? Studio City Company, a wholly-owned subsidiary of Studio City International HoldingsDealroom has a profile for this one. Try Dealroom → Limited (SCIHL), has priced $300M in senior secured notes due 2031, carrying a 6.125% coupon. The Macau-based company will use the proceeds, plus cash on hand, to buy back and retire its outstanding 7.00% senior secured notes due 2027.

Why now? The refinancing lets Studio City replace higher-cost 2027 debt with cheaper paper — cutting its coupon by nearly a full percentage point. With the 2027 notes approaching maturity, locking in lower rates now reduces near-term repayment risk and extends the company's debt runway to 2031.

Studio City launched a conditional cash tender offer on May 6 to repurchase all outstanding 2027 notes. Any that remain after the tender will be redeemed in full.

What could go wrong? The new notes are senior secured obligations, but they sit behind a $30M credit facility that shares the same collateral — meaning that facility gets paid first in any enforcement scenario. Neither parent Melco Resorts & EntertainmentDealroom has a profile for this one. Try Dealroom → nor SCIHL guarantees the notes, so investors bear Studio City Company-level credit risk alone.

The notes are sold only to qualified institutional buyers under Rule 144A and to non-US persons under Regulation S, with no plans for public registration in the US.

The signal: Both Studio City International Holdings and its parent Melco Resorts & Entertainment are classified as late-growth companies, suggesting a maturing capital structure where shaving nearly a full percentage point off debt costs matters more than chasing new equity. The successful placement also indicates that institutional investors remain comfortable extending duration to Asian gaming credits — a vote of confidence in Macau's revenue trajectory four years after pandemic-era disruptions.

Read more: globenewswire.com