In a strategic move, Studio City Finance Limited, a subsidiary of Studio City International Holdings, has expanded the aggregate principal amount of its ongoing tender offer for outstanding 6.000% senior notes due 2025. The increase, from the initially announced US$75 million to a robust US$100 million, reflects a confident stance amid a surge in early tenders.
Tender Offer Expansion:
Studio City Finance Limited’s decision to raise the aggregate principal amount from US$75 million to US$100 million signifies a proactive approach to capital management. This move, aimed at optimizing the financial structure, underscores the company’s commitment to enhancing its debt portfolio while responding to market dynamics.
Overwhelming Response:
As of the early tender deadline on Friday, valid tenders received by Studio City Finance reached an impressive US$317.5 million, surpassing the initially set maximum tender amount. The overwhelming response indicates strong investor confidence and a positive market sentiment towards Studio City’s financial offerings.
Expectations for Acceptance:
In light of the robust response, Studio City anticipates accepting notes that were validly tendered during the early tender period, aligning with a combined aggregate principal amount equal to the revised maximum tender amount of US$100 million. This outcome positions Studio City Finance to strategically manage its debt obligations while accommodating investor demand.
Consideration and Settlement Details:
Studio City Finance had previously disclosed that the consideration for each US$1,000 principal amount of notes validly tendered and accepted for purchase would be US$975. The settlement for the accepted tenders is scheduled to take place on November 28, 2023, marking a crucial milestone in the execution of the tender offer.
Studio City Finance in the Macau Landscape:
Studio City Finance Limited operates as the financial arm of Macau’s integrated resort, Studio City, falling under the umbrella of its majority shareholder, Melco Resorts & Entertainment. Understanding the financial maneuvers of Studio City Finance provides insights into the broader financial strategies of Melco Resorts in the competitive Macau market.
The decision by Studio City Finance Limited to augment its tender offer and the substantial early tender response underscore the company’s financial agility and market appeal. As the settlement date approaches, stakeholders will be keenly observing the outcomes and potential implications for Studio City International Holdings and its parent company, Melco Resorts & Entertainment. This detailed analysis sheds light on the intricacies of Studio City’s financial maneuvers and their significance within the evolving landscape of Macau’s integrated resort industry.