Studio City secures US$250m revolving credit facility
The company said it intends to use the proceeds to refinance outstanding indebtedness and for general corporate and working capital purposes.
Macau.- Studio City International Holdings Limited has announced that its subsidiary, Studio City Company Limited, has entered into a new senior credit facility agreement with a group of lenders. The arrangement, announced on Monday (December 2), provides the company with revolving credit facilities amounting to nearly HK$1.95bn (US$250m) for a term of five years.
The agreement also includes an option to increase the commitments under the senior revolving facility “in an amount not exceeding US$100m for Studio City Company to incur further indebtedness under the Senior Revolving Facility, subject to the satisfaction of certain conditions.”
The company said it plans to use the proceeds from the senior revolving facility to refinance outstanding indebtedness and for general corporate and working capital purposes.
The press release also said Studio City Company has also made amendments with its lenders, including the Macau branch of Bank of China, to an earlier credit facility arrangement dated March 15, 2021. The company said the existing facility, valued at HK$234m, includes terms that have been updated to align with the provisions of the new agreement.
Studio City International Holdings is controlled by Macau gaming concessionaire Melco Resorts & Entertainment, which oversees gaming operations at the Studio City casino resort.
For the third quarter of the year, Melco Resorts & Entertainment reported operating revenue of US$1.18bn for the third quarter of the year. That’s an increase of 16 per cent in year-on-year terms and a rise of 1.72 per cent when compared to the US$1.16bn recorded in the second quarter of the year. The increase was attributed to the improved performance in all gaming segments and non-gaming operations, led by the continued recovery in inbound tourism to Macau during the third quarter of the year.
The company reported operating income of US$138.6m, compared to US$94.7m in the third quarter of 2023. In quarter-on-quarter terms, the figure was up 12.05 per cent. The group’s adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) was US$322.5m compared with US$280.6m in 2023.
Studio City posted operating revenue of US$352.3m, up 3.52 per cent sequentially and 26.87 per cent compared to the third quarter of 2023. Studio City generated adjusted EBITDA of US$92.8m, compared with adjusted EBITDA of US$67.7m in the third quarter of 2023. The company attributed the year-over-year increase to a better performance in all gaming segments and non-gaming operations.
Rolling chip volume was US$494.8m and the win rate 5.57 per cent. The Mass market table games drop was US$912.9m and the hold percentage 30.7 per cent. The gaming machine handle was US$853m, compared to US$673.9m in the third quarter of 2023. The gaming machine win rate was 3.3 per cent. Non-gaming revenue was US$89.3m, compared with US$79.0m in the third quarter of 2023.
