GGRAsia – Sci Games announces upsizing, pricing of new note offer

Sci Games announces upsizing, pricing of new note offer

Feb 03, 2017 Newsdesk Latest News, Top of the deck, World

U.S.-based casino equipment and lottery services firm Scientific Games Corp said on Thursday that it would be increasing its private offering of 7.0 percent senior secured notes due 2022 to US$1.15 billion. That represents a US$150-million increase from the original offering amount announced on Wednesday.

The new notes are priced at 106 percent, Scientific Games said in a press release. The new offering – done via subsidiary Scientific Games International Inc – will be combined with the current US$950-million, 7.0 percent notes, due 2022.

“The new notes and the existing notes will be treated as a single series of debt securities for all purposes under the indenture,” the company stated.

The offering is expected to close on February 14, 2017, the firm added.

Proceeds from the offering will be used to pay down a portion of the term loan as well as redeem outstanding senior subordinated notes due in 2018: approximately US$250-million at 8.125 percent. According to company information, the repayment of the 2018 notes would in likelihood occur only after March 15.

In connection with the proposed refinancing plan, Scientific Games on Wednesday released some “selected preliminary expected” financial results for the fourth quarter and full year ended December 31, 2016, with the expected results coming in above analysts’ consensus.