Studio City Company Announces Proposed Senior Secured Notes Offering
Rhea-AI Summary
Studio City Company (MSC) proposes an international offering of senior secured notes (the “New Notes”) to repay and/or redeem its outstanding 7.00% senior secured notes due 2027. The New Notes would be senior secured obligations of Studio City Company and guaranteed by Studio City Investments and its subsidiaries (excluding Studio City Company).
The offering will target qualified institutional buyers in the U.S. under Rule 144A and non-U.S. persons under Regulation S. Completion is subject to market conditions, pricing, and investor demand; terms including interest rate will be set at pricing.
AI-generated analysis. Not financial advice.
Positive
- 7.00% 2027 notes targeted for repurchase/redemption with offering proceeds
- Offering structured for Rule 144A/Reg S to reach institutional investors
Negative
- US$30 million credit facility claims would have priority over New Notes on shared collateral
- Offering is non‑binding and subject to market conditions; may not be completed
- Note guarantees exclude Melco Resorts and SCIHL, limiting upstream support
News Market Reaction – MSC
On the day this news was published, MSC declined 0.21%, reflecting a mild negative market reaction. Argus tracked a peak move of +23.7% during that session. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $1M from the company's valuation, bringing the market cap to $521.91M at that time. Trading volume was elevated at 2.0x the daily average, suggesting increased selling activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
MSC fell 7.69% while key peers were mixed: GDEN -0.17%, MLCO -3.07%, but MCRI and PENN gained 1.58% and 1.91%, respectively, suggesting a stock-specific reaction to the notes offering.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 30 | Q1 2026 earnings | Positive | -2.9% | Stronger Q1 revenues and EBITDA with move to net income. |
| Mar 13 | Annual report filing | Neutral | -6.7% | Form 20-F filing with audited FY 2025 financials. |
| Feb 12 | Q4/FY 2025 earnings | Neutral | +0.6% | Q4 and full-year 2025 revenue and EBITDA update. |
| Feb 05 | Earnings date notice | Neutral | +0.0% | Announcement of timing for Q4 and FY 2025 results. |
| Nov 06 | Q3 2025 earnings | Positive | -9.3% | Improved Q3 revenues and EBITDA with narrower net loss. |
Recent earnings and filing news often coincided with flat-to-negative next-day moves, even when results improved.
Over the last six months, Studio City has mainly reported earnings and regulatory filings. Q3 2025 and Q4 2025 results showed rising revenues and Adjusted EBITDA, yet the stock moved -9.25% after Q3 2025 and only 0.61% after Q4 2025. Q1 2026 earnings with US$176.7M revenues and net income of US$2.9M still saw a -2.89% reaction. Routine filings like the 2025 Form 20-F also aligned with a -6.67% move, indicating a tendency toward weak reactions around disclosures.
Market Pulse Summary
This announcement outlined an international offering of senior secured New Notes, primarily to repurchase and redeem existing 7.00% senior secured notes due 2027. The structure includes senior guarantees and use of Rule 144A and Regulation S exemptions, with completion subject to market conditions. Historically, Studio City’s earnings and filings have produced mixed stock reactions, underscoring the importance of monitoring final pricing terms, investor demand for the Notes, and any subsequent changes in the company’s overall debt profile.
Key Terms
senior secured notes financial
senior indebtedness financial
subordinated indebtedness financial
tender offer financial
Rule 144A regulatory
Regulation S regulatory
Securities Act regulatory
AI-generated analysis. Not financial advice.
MACAU, May 06, 2026 (GLOBE NEWSWIRE) -- Studio City Company Limited (“Studio City Company”) today announces that it proposes to conduct an international offering of senior secured notes (the “New Notes” and such offering, the “Notes Offering”). Studio City Company is a wholly-owned subsidiary of Studio City International Holdings Limited (“SCIHL”).
The New Notes are proposed to be senior secured obligations of Studio City Company, ranking equally in right of payment with all existing and future senior indebtedness of Studio City Company (although any liabilities in respect of obligations under the US
The interest rate and other terms of the New Notes will be determined at the time of pricing of the Notes Offering. Completion of the proposed Notes Offering is subject to market conditions and investor interest. As no binding agreement in relation to the proposed Notes Offering has been entered into as at the date of this press release, the proposed New Notes may or may not be issued.
The net proceeds from the Notes Offering will be used, together with cash on hand, to repurchase any and all outstanding Studio City Company’s outstanding
The New Notes and the Note Guarantees are being proposed to be offered and sold in the United States to qualified institutional buyers pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and outside of the United States to non-US persons in reliance on Regulation S under the Securities Act. The proposed New Notes and the Note Guarantees have not been and will not be registered under the Securities Act or under the securities laws of any state or other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and any applicable state laws. Studio City Company does not intend to register any portion of the offering of the proposed New Notes and the Note Guarantees in the United States.
This press release is for information purposes only. Nothing in this press release constitutes an offer to buy, or a solicitation of an offer to sell, securities in the United States or any other jurisdiction in which such offer or solicitation would be unlawful. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.
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. SCIHL may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, 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 Studio City 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) changes in the gaming market and visitations in Macau, (ii) local and global economic conditions, (iii) capital and credit market volatility, (iv) our anticipated growth strategies, (v) risks associated with the implementation of the amended Macau gaming law by the Macau government, (vi) gaming authority and other governmental approvals and regulations, and (vii) 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 Studio City Company’s offering memorandum with respect to the New Notes. All information provided in this press release is as of the date of this press release, and Studio City Company undertakes no duty to update such information, except as required under applicable law.
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
