GGRAsia – Sci Games upsizes private note offering to US$550mln

Sci Games upsizes private note offering to US$550mln

Jun 18, 2020 Newsdesk Industry Talk, Latest News, Top of the deck

Casino equipment supplier Scientific Games Corp is upsizing a senior unsecured note offering to US$550.0 million, the company said on Wednesday. The principal amount of the offering was increased from a previously announced offering size of US$350.0 million, as disclosed by Scientific Games earlier that day.

The firm said in its latest press release its wholly owned subsidiary Scientific Games International Inc had priced US$550.0 million in aggregate principal amount of 8.625-percent senior unsecured notes due 2025, at an issue price of 100.000 percent.

Scientific Games said it intends to use the net proceeds of the note offering to redeem all US$340.6 million of Scientific Games International’s outstanding 6.625-percent senior subordinated notes due 2021, and to pay accrued and unpaid interest thereon plus any related premiums, fees and costs. In addition, the company plans to use the capital raised to “pay related fees and expenses of the notes offering and to fund working capital and general corporate purposes.”

The notes will be guaranteed on a senior basis by Scientific Games and some of its other subsidiaries, and the notes will not be secured, the firm said. The offering is expected to close on July 1.

A number of casino operators and gaming equipment suppliers have in recent weeks announced fresh debt issuance exercises, to help them face the financial challenges posed by the negative impact on business from the Covid-19 pandemic.

In its press release on the note offering, Scientific Games made no reference to Covid-19.

Scientific Games got a new chief financial officer earlier this month. Michael Eklund took over from Michael Quartieri, who will remain with the company full time until June 30 and in a consulting role through to December 31, said the firm in a press release.

The gaming supplier said last month that its first-quarter net loss widened to US$159 million, from US$24 million a year earlier. The company said the quarterly results had been “negatively impacted by the Covid-19 disruptions”.