SINGAPORE – Bonds issued by US partners in Studio City have dropped to distressed levels after gaming revenue in the city entered a third year of declines and S&P Global Ratings lowered its outlook on the project.
The 10.625 percent notes co-issued by New Cotai Limited Liability Company and New Cotai Capital Corporation, units of US hedge funds Silver Point Capital and Oaktree Capital Group, were indicated at 42.5 cents on the US dollar on Thursday, according to prices from independent fixed-income firm SC Lowy.
The 2019 payment-in-kind notes, which pay interest in additional bonds rather than cash, last traded at 46 cents on August 10 to yield 44.4 percent, versus 64 cents on June 15 and 73 cents on March 3, according to Trace data.
