GGRAsia – Sci Games markets US$1.1 bln in new senior notes

Sci Games markets US$1.1 bln in new senior notes

Mar 06, 2019 Newsdesk Latest News, Top of the deck, World

United States-based maker of casino equipment Scientific Games Corp will offer US$1.1 billion worth of debt and use the proceeds to pay down US$1 billion in unsecured notes maturing in 2022.

On Tuesday, the company issued an announcement saying its subsidiary, Scientific Games International Inc, would offer the senior unsecured notes – due to mature in 2026 – to institutional investors outside the United States.

In a second announcement, issued on Wednesday, Scientific Games said its subsidiary had set an issue price of 100 percent for the new, 8.25-percent, notes.

The second notice stated the company expected the offering to close on March 19.

Scientific Games said the net proceeds would redeem about US$1 billion of its outstanding 10-percent senior unsecured notes and settle the expenses of bringing the debt issue to the market.

In February, Scientific Games announced its annual net loss grew to US$352.4 million in 2018 from US$242.3 million the year before, on annual revenue that increased by 9.1 percent to US$3.36 billion.

In the fourth quarter of last year, the company made a net profit of US$206.8 million, having made a net loss of US$43.1 million a year earlier, on revenue that increased by 7.6 percent to US$885.7 million.

Scientific Games’ net debt stood at about US$9.05 billion at December 31, compared to nearly US$8.08 billion one year earlier.