Casino equipment and lottery services provider Scientific Games Corp says it has completed a previously-flagged amendment to its credit agreement, resulting in an extension on the maturity of its US$3.28-billion in existing term loans and a reduction in the applicable interest rate on its term loans.
At the end of June, Scientific Games had total outstanding debt of US$8.18 billion, according to its second-quarter results, issued in late July.
Under the new agreement announced on Monday, the applicable margin for Scientific Games’ term loans is amended to 3.25 percent per annum for “eurodollar” London Interbank Offered Rate (LIBOR) loans, and 2.25 percent per annum for base rate loans. No LIBOR floor is applicable for the 3.25-percent term loans.
All of the term loans under the credit agreement are now scheduled to mature on August 14, 2024, “subject to accelerated maturity under certain circumstances,” said the group in a filing to Nasdaq.
In a press release issued separately by the group, Scientific Games’ chief executive Kevin Sheehan said: “Our ongoing attention toward improving operating execution, generating stronger cash flows and deleveraging our balance sheet has enabled us to amend our credit agreement on more favourable terms.”
He added that improvements in the group’s capital structure “further strengthened” its cash flow prospects.
The company reported second-quarter revenue of US$766.3 million, up by 5.1 percent from the prior-year period and above market expectations.
In February, Scientific Games had announced it had extended the maturity of its term loans to October 1, 2021, and reduced the applicable interest rate on the term loans to a rate of LIBOR plus 400 basis points with a LIBOR floor of 75 basis points.
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"If you ask who is controlling [Okada Holdings, the controlling shareholder of conglomerate Universal Entertainment] now, I would say my control was fraudulently taken away from me and I am now doing everything in my power to take it back"
Japanese gaming entrepreneur