Studio City Enters into Senior Facilities Agreement

Rhea-AI Summary

Studio City International Holdings announces that its subsidiary, Studio City Company, has secured a new HK$1.945 billion (approximately US$250 million) revolving credit facility through a senior facilities agreement with a banking syndicate. The five-year facility includes an option to increase commitments by up to US$100 million. The agreement is secured and guaranteed by the Company and its subsidiaries.

Additionally, Studio City Company has amended its existing credit facilities of HK$234.0 million to align terms with the new agreement. The proceeds will be used for refinancing existing debt and general corporate purposes.

Positive

• Secured new HK$1.945 billion (US$250 million) revolving credit facility
• Option to increase facility by additional US$100 million
• Extended debt maturity with five-year term
• Successfully aligned terms of existing HK$234.0 million facility with new agreement

Negative

• Increased debt load with new credit facility
• Additional leverage through potential US$100 million facility expansion

Insights

Financial Analyst

This new credit facility agreement represents a significant financial development for Studio City, securing HK$1.945 billion (approximately US$250 million) in revolving credit with an additional US$100 million expansion option. The 5-year term provides substantial financial flexibility and improved liquidity position.

The refinancing strategy appears well-timed, potentially offering better terms than existing debt arrangements. The secured nature of the facility, backed by company guarantees, suggests favorable lending conditions. The alignment with existing credit facilities (HK$234 million) indicates comprehensive debt management planning.

For investors, this arrangement strengthens Studio City's financial foundation, enhancing working capital availability and debt management capabilities. The successful syndication with multiple banks demonstrates continued lender confidence in the company's operations and future prospects in Macau's gaming market.

MACAU, Dec. 02, 2024 (GLOBE NEWSWIRE) -- Studio City International Holdings Limited (NYSE: MSC) (“Studio City” or the “Company”), a world-class integrated resort located in Cotai, Macau, today announces that the Company’s subsidiary, Studio City Company Limited (“Studio City Company”), has entered into a senior credit facilities agreement, dated November 29, 2024, with a syndicate of banks (the “2024 Credit Facilities Agreement”). Under the terms of the 2024 Credit Facilities Agreement, lenders have made available to Studio City Company HK$1.945 billion (equivalent to approximately US$250.0 million) in revolving credit facilities for a term of five years (the “Senior Revolving Facility”). The 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 Company to incur further indebtedness under the Senior Revolving Facility, subject to the satisfaction of certain conditions. The Senior Revolving Facility is secured and is supported by a guarantee from the Company, Studio City Investments Limited and each subsidiary of Studio City Company. The Company intends to use the proceeds from the Senior Revolving Facility to refinance outstanding indebtedness and for general corporate and working capital purposes. 

Studio City Company has also entered into an amendment and restatement agreement, dated November 29, 2024, with, among others, Bank of China Limited, Macau Branch, in relation to the senior secured term loan and revolving facilities agreement dated March 15, 2021 (as amended and restated from time to time, and currently representing HK$234.0 million of committed facilities) (the “Existing Credit Facilities”) to, among other things, align certain terms of the Existing Credit Facilities with the terms of the 2024 Credit Facilities Agreement.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Studio City International Holdings Limited (the “Company”) may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. These factors include, but are not limited to, (i) the pace of recovery from the impact of COVID-19 on our business, our industry and the global economy, (ii) risks associated with the amended Macau gaming law and its implementation by the Macau government, (iii) changes in the gaming market and visitations in Macau, (iv) capital and credit market volatility, (v) local and global economic conditions, (vi) our anticipated growth strategies, (vii) gaming authority and other governmental approvals and regulations, and (viii) our future business development, results of operations and financial condition. In some cases, forward-looking statements can be identified by words or phrases such as “may”, “will”, “expect”, “anticipate”, “target”, “aim”, “estimate”, “intend”, “plan”, “believe”, “potential”, “continue”, “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company undertakes no duty to update such information, except as required under applicable law.

About Studio City International Holdings Limited

The Company, with its American depositary shares listed on the New York Stock Exchange (NYSE: MSC), is a world-class integrated resort located in Cotai, Macau. For more information about the Company, please visit www.studiocity-macau.com.

The Company is majority owned by Melco Resorts & Entertainment Limited, a company with its American depositary shares listed on the Nasdaq Global Select Market (Nasdaq: MLCO).

For the investment community, please contact:
Jeanny Kim
Senior Vice President, Group Treasurer
Tel: +852 2598 3698
Email: jeannykim@melco-resorts.com

For media enquiries, please contact:
Chimmy Leung
Executive Director, Corporate Communications
Tel: +852 3151 3765
Email: chimmyleung@melco-resorts.com

FAQ

What is the size of Studio City's new credit facility announced in December 2024?

Studio City secured a HK$1.945 billion (approximately US$250 million) revolving credit facility with a five-year term.

How will Studio City (MSC) use the proceeds from the 2024 Credit Facilities Agreement?

The proceeds will be used to refinance outstanding indebtedness and for general corporate and working capital purposes.

What is the expansion option in Studio City's 2024 Credit Facilities Agreement?

The agreement includes an option to increase the commitments under the Senior Revolving Facility by up to US$100 million, subject to certain conditions.

What is the size of Studio City's existing credit facilities being amended?

The existing credit facilities being amended amount to HK$234.0 million in committed facilities.