Sci Games unit prices US$1.2bln in unsecured notes

Nov 13, 2019 Newsdesk Industry Talk, Latest News, World  

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Gaming equipment and lottery services provider Scientific Games Corp’s wholly-owned subsidiary Scientific Games International Inc has priced US$1.2-billion – in aggregate principal amount – in senior unsecured notes, the parent said in a Tuesday press release.

The unsecured notes – comprising US$700-million of 7.00-percent senior unsecured notes due in 2028; and US$500-million of 7.25-percent senior unsecured notes due in 2029 – are respectively at an issue price of 100 percent, according to a previously-announced private offering.

The offering is currently expected to close on November 26, according to the parent.

Scientific Games Corp intends to use the net proceeds of the notes offering – together with cash on hand and borrowings under the group’s existing revolving credit facility – to “redeem all US$1.2 billion of Scientific Games International’s outstanding 10.0  percent senior unsecured notes due in 2022, redeem all US$244 million of that unit’s outstanding 6.25 percent senior subordinated notes due in 2020..,” the parent said.

It added it would also use the proceeds to pay “accrued and unpaid interest”.. plus any related premiums, fees and costs and pay related fees and expenses of the notes offering.

The parent said in a third-quarter earnings statement issued last week that its net debt for the 12 months to September 30, stood at just under US$8.60 billion, a reduction of US$241 million on the nearly US$8.84 billion a year earlier.

Scientific Games swung to a third-quarter profit of US$14 million, compared to a loss of US$352 million in the same quarter a year ago.

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