• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Sci Games net leverage down, cost savings likely: analyst

Nov 06, 2017 Newsdesk Industry Talk, Latest News, Top of the deck, World  


Sci Games net leverage down, cost savings likely: analyst

Gaming technology and services provider Scientific Games Corp has reduced its net leverage to 6.8x adjusted earnings before interest, taxation, depreciation and amortisation (AEBITDA), and interest cost savings are now on the cards, stated brokerage Union Gaming Securities LLC in a Friday note.

At the end of September, Scientific Games had total net debt of US$7.98 billion, according to its third-quarter earnings statement issued on November 1.

“Scientific Games has worked its net leverage down to 6.8x AEBITDA and considerably reduced its interest expense this year with term loan repricings,” stated Union Gaming analyst John DeCree.

“We see a base case for nearly US$100 million of incremental interest savings in 2018 if credit markets hold up,” added the analyst.

He noted that bonds issued by Scientific Games with respective 7-percent and 10-percent coupon rates were “callable in January 2018 and December 2018, respectively”.

“Refinancing these bonds would represent a significant free cash flow catalyst for Scientific Games,” wrote Mr DeCree.

In terms of group cost savings, the brokerage saw opportunity for cost savings and accrual of group EBITDA via Scientific Games’ planned acquisition of Canada-listed sports wagering specialist NYX Gaming Group Ltd, announced in September.

“We like the pending NYX acquisition for a number of reasons. First, it represents more growth as Scientific Games integrates its content with NYX’s technology,” wrote Union Gaming’s Mr DeCree.

He added: “We see revenue synergy opportunities but also recognise some cost synergies as NYX is a publicly-listed company as well. Second, NYX is capex-light, allowing the EBITDA growth to accrue more quickly to Scientific Games’ free cash flow. Finally, NYX adds EBITDA to Scientific Games’ highest-multiple digital and interactive business”, stated the analyst.

Scientific Games had said that the 6.8-percent growth in third-quarter revenue had been driven by its gaming, lottery and interactive segments.

Scientific Games’ wholly-owned subsidiary Scientific Games International Inc conducted in October a private offering for US$350-million in senior secured notes due 2025.

The net proceeds of the notes, together with cash on hand and borrowings under the company’s existing revolving credit facility are to be used to finance the planned acquisition of NYX Gaming and its subsidiaries, and to refinance some debt of the target business, according to previous announcements from Scientific Games.


  • tweet
Related articles
  • Wynn Macau Ltd US$600mln bond offer, says Jan-Feb strong
    Wynn Macau Ltd US$600mln bond offer,...

    Mar 03, 2023  

  • Deutsche Bank ups Macau 2023 GGR forecast after Feb data
    Deutsche Bank ups Macau 2023 GGR...

    Mar 02, 2023  

More news
  • Nagasaki says Credit Suisse woes not to impact IR plan
    Nagasaki says Credit Suisse woes not to...

    Mar 20, 2023  

  • Macau GGR for March 1 to 19 at US$845mln: JP Morgan
    Macau GGR for March 1 to 19 at...

    Mar 20, 2023  


Latest News

Nagasaki says Credit Suisse woes not to impact IR plan

Nagasaki says Credit Suisse woes not to impact IR plan

Mar 20, 2023  

Credit Suisse Group AG, described last year by Nagasaki governor Kengo Oishi as one of several potential “financial arrangers” for a proposed casino resort project within that Japanese prefecture...
Read More
Macau GGR for March 1 to 19 at US$845mln: JP Morgan

Macau GGR for March 1 to 19 at US$845mln: JP Morgan

Mar 20, 2023  

Let’s Win hosts grand opening for club at Hoiana in Vietnam

Let’s Win hosts grand opening for club at Hoiana in...

Mar 20, 2023  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day


1.59 million

Total number of visitor arrivals to Macau in February



Most Popular

  • Universal Ent seeks to end SPAC deal for Okada Manila listingUniversal Ent seeks to end SPAC deal for Okada Manila… March 20, 2023
  • Let’s Win hosts grand opening for club at Hoiana in VietnamLet’s Win hosts grand opening for club at Hoiana in… March 20, 2023
  • Macau GGR for March 1 to 19 at US$845mln: JP MorganMacau GGR for March 1 to 19 at US$845mln: JP Morgan March 20, 2023
  • Macau visitor tally up 14pct m-o-m in FebruaryMacau visitor tally up 14pct m-o-m in February March 17, 2023
  • LET Group flags 2022 loss of US$52mln, Hoiana repays loanLET Group flags 2022 loss of US$52mln, Hoiana repays loan March 20, 2023
Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us