GGRAsia – Scientific Games completes offering of US$1.2bln of debt

Scientific Games completes offering of US$1.2bln of debt

Nov 27, 2019 Newsdesk Industry Talk, Latest News

U.S.-based gaming equipment manufacturer Scientific Games Corp says a wholly-owned subsidiary called Scientific Games International Inc has completed a private offering of US$1.2 billion of new senior unsecured notes.

The offer was comprised of US$700 million of 7.0 percent senior unsecured notes due 2028 and US$500 million of 7.25 percent senior unsecured notes due 2029, each offered at an issue price of 100 percent.

Scientific Games said in a press release on Tuesday that it would use the net proceeds of the exercise – together with cash on hand and borrowings under its existing revolving credit facility – to redeem US$1.2 billion of outstanding 10-percent senior unsecured notes, due to mature in 2022, and to redeem US$244 million of outstanding 6.25-percent senior subordinated notes due 2020. The notes were issued by its subsidiary Scientific Games International.

The parent company said additionally that it would also use the proceeds to settle accrued and unpaid interest plus any related premiums related with the notes it planned to redeem. In addition, the proceeds would also be used to pay various costs related to the latest note offering.

When announcing the offering earlier this month, Scientific Games said the notes would be offered to institutional investors outside the United States.

The parent said in a third-quarter earnings statement issued in early November 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.