MSC · Studio City International Holdings Limited

Studio City Company priced its international offering of US$300 million 6.125% senior secured notes due 2031 at par (100%), enabling a refinancing of its higher-coupon 7.00% senior secured notes due 2027. The proceeds, combined with cash on hand, support a conditional cash tender offer launched on May 6, 2026, targeting full repurchase of the 2027 notes (CUSIP G8539E AC9, 86400G AC3), with redemption for any holdouts. This extends debt maturity by four years while reducing the interest rate by 0.875%, potentially lowering annual interest expense by approximately US$2.625 million assuming full tender. The new notes are senior secured obligations ranking pari passu with other senior debt but with a lien subordination to a US$30 million senior secured credit facility on shared collateral, introducing a modest structural risk. Guarantees come from Studio City Investments Limited and its subsidiaries excluding the issuer, maintaining ring-fencing from parent SCIHL and Melco Resorts & Entertainment Limited. The unregistered offering to qualified institutional buyers under Rule 144A and non-US persons under Regulation S ensures efficient execution without public registration delays. Investors should note the forward-looking risks highlighted, including Macau gaming market dynamics and capital market volatility, which could impact execution and future liquidity.