Lawrence Ho purchases $60 million in Studio City senior notes

Casino billionaire Lawrence Ho has purchased $60 million (478 million patacas) worth of senior notes offered by Studio City, saying the funds will help continue its Phase 2 construction.
Ho acquired the notes in his capacity as chairman and chief executive officer of the Hong Kong-listed Melco International Development Ltd, which indirectly owns the property via a local subsidiary.
According to information filed with the Hong Kong Stock Exchange, Ho’s acquisition of the senior notes due in 2025 was arranged in two orders placed on July 9.
Studio City is aiming to raise an aggregate of $1 billion via the senior notes offering, with the net proceeds used in part to fund the capital expenditure of the remaining expansion project for Studio City.
Work on Studio City phase 2 began earlier this year. The project will include two hotel towers with an aggregate of 900 rooms and suites, a cineplex, space for meetings and exhibitions and “one of the world’s largest indoor water parks,” according to Melco.
The casino operator is targeting a mid-2022 completion, but warned it might miss that target because of Covid-19 related disruptions.
“Prior to the Covid-19 outbreak, we estimated a construction period of approximately 32 months for [Studio City] Phase 2. With the disruptions from the Covid-19 outbreak, the construction period is likely to extend beyond the estimated approximately 32 months,” Studio City International Holdings, which controls the property, said in a May update. DB