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Harneys advises on Studio City's Senior Secured Notes Offering and Super Senior Revolving Credit Facility

1 February 2017

Harneys advised entertainment resort Studio City Company Limited (SCC) on its Rule 144A/Regulation S international offering of senior secured notes due 2019 and senior secured notes due 2021, and its HK$233 million super senior revolving credit facility (SSRCF).
The transaction, which was executed on a highly accelerated timetable, involved complex intercreditor and security interest arrangements and was one of the first corporate pari bank-bond transactions with a super senior revolving credit facility in the region, as well as being one of the largest high yield corporate bonds in Asia for 2016.
The offering consisted of US$350 million aggregate principal amount 5.875 percent senior secured notes due 2019, and US$850 million aggregate principal amount 7.25 percent senior secured notes due 2021. 60 percent is held indirectly by Melco Crown Entertainment Limited, a developer, owner and operator of casino gaming and entertainment resort facilities in Asia, and 40 percent is held indirectly by New Cotai, LLC. SCC will use the proceeds of the offering together with additional cash reserves to repay outstanding debt, and the SSRCF for general corporate and working capital purposes.
Harneys lawyers Paul Sephton (partner) and Sharon Cong (associate) advised on BVI and Cayman law aspects of the transaction, which completed on 1 December 2016.

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