We expect capital expenditure (capex) needs to exhaust operating cash flow and the shortfall to be funded by new debt, pushing debt/EBITDA ratio higher in 2020. Studio City commenced construction-related work at the site of its Phase II Project in 2018 with an estimated budget of approximately US$1.4 billion (exclusive of pre-opening costs and financing costs); the construction deadline is July 24, 2021. Studio City's liquidity buffer will narrow over the next 12 months given the maturity of its senior secured notes of US$350 million in November 2019 and the committed capital investment on the Phase II Project. Nevertheless, we continue to assess the company's liquidity as adequate given its track record in proactively arranging for funding. Studio City can
