Scientific Games Sells Its Debt Notes
The Nevada-based company that provides gambling products and services to lottery and gambling organizations around the world Scientific Games has announced it will sell more than $1 billion worth of its debt notes to various private investors.
According to available information, the first pieces to be sold to investors will be worth around $500 million, representing a 5% of the debt, and will be due for payment in 2025.
What Will The Company Do With The Money?
Apart from this private sale, Scientific Games will sale €325 million worth of senior secured notes, along with the company clearance of €250 million in corporate unsecured notes, while both of these debt tranches will be due for payment in 2026.
Scientific Games’ governance plans to use the money obtained from these transactions, along with a term B loan, to decrease the company’s current senior debt of 7%, whose repayment is due in four years.
The new debt notes will, of course, be guaranteed by Scientific Games on a senior basis, along with other group subsidiaries.
Problems On The Horizon?
It’s important to emphasize the fact this is the second time in six months the Las Vegas-headquartered company restructures its long-term debt.
Back in October 2017, Scientific Games sold a number of secured notes worth $350 million, whose repayment is due in 2025. This move was a part of a fund-raising process aimed at gathering funds to purchase NYX.
According to the recently released update, Scientific Games stated it expected the full-year 2017 losses were around $238-to-$248 million. This signifies an improvement over the full-year
results from 2016.
Founded 45 years ago, the company’s product line-up includes electronic gaming machines, table games, iGaming and iLottery products, instant lottery games, lottery gaming systems, terminals and services, internet applications, server-based interactive gambling terminals, and gambling control systems.