Studio City International Holdings Limited has announced plans for an international offering of senior secured notes as part of a broader refinancing strategy aimed at repurchasing its outstanding 7.00% senior secured notes due 2027.

The move reflects a growing trend across Macau’s gaming sector, where operators are proactively reshaping debt profiles and strengthening liquidity positions as the industry enters a more stable post-pandemic recovery phase.

A Strategic Debt Refinancing Move

According to a company filing, subsidiary Studio City Company Limited intends to use proceeds from the proposed offering to repurchase any and all of its outstanding 2027 senior secured notes.

The company has also launched a tender offer for those notes, scheduled to expire at 5pm New York time on 12 May 2026.

While the final interest rate and terms of the new notes will only be determined at pricing, the transaction itself signals Studio City’s intention to extend debt maturities early and reduce future refinancing pressure before the 2027 maturity wall approaches.

This type of proactive refinancing has become increasingly important as gaming operators navigate:

• elevated global interest rates,
• large debt balances accumulated during the pandemic,
• and the need to maintain strong liquidity flexibility.

S&P Sees Transaction as Leverage Neutral

Following the announcement, S&P Global Ratings assigned a “B+” long-term issue rating to the proposed senior secured notes.

Importantly, S&P indicated it expects Studio City’s debt-to-EBITDA ratio to remain largely unchanged after the refinancing exercise.

“We therefore regard the transaction as neutral for the group’s leverage,” the ratings agency stated.

As of 31 March 2026, Studio City Finance Ltd’s capital structure included:

• approximately US$1.6 billion in senior unsecured notes,
• US$350 million in senior secured notes,
• and US$70 million in secured credit facilities.

S&P also noted that Studio City’s priority debt ratio is expected to remain at 21%, comfortably below the agency’s 50% threshold that could trigger a ratings downgrade.

Confidence in Macau’s Long-Term Recovery

The refinancing initiative also reflects broader market confidence in Macau’s continued recovery trajectory.

The core asset of Studio City International Holdings is Studio City Macau, one of the three Macau integrated resorts operated under Melco Resorts & Entertainment, which holds nearly 55% ownership in Studio City International.

In recent quarters, Macau operators have increasingly focused on:

• premium mass gaming,
• entertainment-driven tourism,
• luxury hospitality,
• and operational efficiency

rather than aggressive expansion.

Operators generally do not refinance large debt positions unless they have reasonable confidence in future cash flow visibility and market stability.

A Wider Macau Industry Trend Emerging

Studio City is not alone.

Both MGM China and Las Vegas Sands have also proposed similar senior notes offerings in recent days, highlighting a broader industry-wide focus on:

• capital structure optimization,
• extending maturities,
• preserving liquidity,
• and improving financial flexibility.

This suggests Macau’s integrated resort operators are now entering a more financially disciplined phase of the recovery cycle.

The industry narrative is gradually shifting away from survival and reopening toward:

• balance sheet quality,
• long-term sustainability,
• and shareholder value creation.

Why Investors Are Watching Refinancing Activity Closely

For investors and analysts, refinancing activity can often reveal more about management confidence than headline gaming revenue alone.

Strong access to capital markets generally indicates:

• lender confidence,
• stable operational outlook,
• and improved market sentiment toward Macau gaming operators.

At the same time, refinancing allows operators to better position themselves for future opportunities, including:

• property upgrades,
• entertainment expansion,
• premium customer initiatives,
• and non-gaming investments required under Macau’s new concession framework.

As Macau continues stabilizing, capital management is becoming just as strategically important as gaming growth itself.