Casino equipment maker and lottery services provider Scientific Games Corp has completed a series of previously announced financing transactions involving, among other items, the placing of a mixture of secured and unsecured notes.
“Including the effect of cross-currency interest rate swap arrangements, the net impact of the financing transactions will be to lower the company’s annual cash interest cost by approximately US$69 million at current rates, while extending maturities of US$2.1 billion of its debt from 2022 out to 2024, 2025 and 2026,” Scientific Games said in a Wednesday release.
In late January, the firm had announced it planned to raise – via a wholly-owned subsidiary – the equivalent of an additional US$1.21 billion approximately, via a mixture of secured and unsecured notes, all via private offering to qualified buyers. That included: an additional US$500 million of its 5.000-percent senior secured notes due 2025; EUR325 million (US$404.8 million) of senior secured notes due 2026; and EUR250 million of senior unsecured notes due 2026.
Scientific Games eventually upsized the offering of senior secured notes to US$900 million from US$500 million.
The financial transactions now concluded also include – according to Scientific Games’ announcement – a US$900 million upsizing and repricing of a term loan “that reduced the applicable interest rate” by 50 basis points; and an increase in the availability under a revolving credit facility to US$620.2 million through October 18, 2018, “with a step-down in availability at that time to US$445.7 million until the extended maturity date on October 18, 2020.”
The group plans to use the net proceeds of the financing transactions to redeem all US$2.1 billion of its outstanding 7.000-percent senior secured notes due 2022; prepay borrowings under its revolving credit facility, including accrued and unpaid interest; and pay related premiums, fees and expenses.
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"We are building momentum and continuing to grow our business while at the same time operating more efficiently"
Chief executive and president of casino equipment maker and lottery services supplier Scientific Games