GGRAsia – Sci Games raising extra US$1.21bln via private offering

Sci Games raising extra US$1.21bln via private offering

Jan 30, 2018 Newsdesk Industry Talk, Latest News

Casino equipment maker and lottery services provider Scientific Games Corp said on Monday that it planned to raise 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.

The group said in a press release it would use the net proceeds – together with borrowings under the term loan ‘B’ facility of its credit agreement – to “redeem a portion of its outstanding 7.000-percent senior secured notes due 2022 and pay accrued and unpaid interest thereon plus any related premiums, fees and costs, and pay related fees and expenses of the new notes offering and for general corporate purposes”.

The detail of the new notes offering is that a wholly-owned subsidiary, Scientific Games International Inc intends – “subject to market and other conditions” – to offer an additional US$500 million of its 5.000-percent senior secured notes due 2025; EUR325 million (US$402 million) of senior secured notes due 2026; and EUR250 million of senior unsecured notes due 2026, in a private offering.

Scientific Games had announced on January 24 that it expected consolidated group revenue to be in a range of US$820 million to US$825 million for the three months to December 31, up approximately 9 percent from the prior-year period.

On January 5, the group announced the completion of a deal to acquire the then Canada-listed sports betting firm NYX Gaming Group Ltd. Scientific Games first flagged in September its intention to acquire NYX Gaming for approximately CAD775 million (US$628 million), including debt.