Macau-based Studio City talks benchmark eight-year notes to yield in 5¼% area; pricing Tuesday

By Paul A. Harris

Portland, Ore., Jan. 4 – Studio City International Holdings Ltd. talked its benchmark offering of eight-year senior notes (B1/BB-) to yield in the 5¼% area, according to market sources.

Talk comes tight to initial guidance in the 5½% area.

Books were set to close late Monday, and the Rule 144A and Regulation S for life notes are expected to price on Tuesday morning.

Although the specific size of the offering remains to be announced, the market anticipates $650 million, according to a trader, who added that order book was heard to be slightly less than two-times oversubscribed at that amount.

The deal is playing to traditional high-yield bond accounts as well as emerging markets investors, sources said.

Deutsche Bank, Morgan Stanley, Bank of China, Bank of Communications, ICBC and Mizuho are the joint bookrunners.

The notes come with three years of call protection.

The issuing entity will be Studio City Finance Ltd., a wholly owned subsidiary of Studio City International Holdings.

The Cotai, Macau-based gaming, lodging and retail company plans to use the proceeds to fund a conditional tender offer for its 7¼% notes due 2024.

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