Scientific Games Corporation (SGC) has confirmed that it will upsize its previously announced senior unsecured debt note placement from $350 million to $550 million.
The debt placement will be carried by SGC’s global operating unit Scientific Games International (SGI), priced at $550 million with an applied principal aggregate of 8.6% due for repayment in 2025.
Net proceeds secured from the upsized placement will be primarily used to redeem SGI’s outstanding debt note placement of $340 million due in 2021 and further interest related costs attached to its previous transaction.
All remaining capital will be used to increase working capital and fund general corporate purposes.
SGI debt notes will be guaranteed by SGC and ‘certain subsidiaries’ on a senior basis. The company expects to close the expanded placement on 1 July 2020 subject to customary conditions.
Publishing its Q1 2020 trading results, SGC recorded group operating losses of $155 million, highlighting that COVID-19 disruptions had impacted all business segments.
Led by Group CEO Barry Cottle, it has implemented a series of drastic cost-saving measures designed to enhance 2020 cash flows by $150 million, in turn helping the firm’s recovery prospects.