Scientific Games completes $ & € debt financing round

Updating the market, Nasdaq-listed gambling technology group Scientific Games Corporation (SGC), has confirmed the successful conclusion of its + $1 billion debt notes sale to private investors.

The Nasdaq corporation first announced its $ and € debt sale on 30 January, seeking to restructure its long-term corporate financing.

Completing the debt transactions, SGC governance secures the following financing structure:

  • Tranche 1: A private offering of $900 million additional aggregate principal amount of its 5% senior secured notes due 2025 at an issue price of 100%.
  • Tranche 2: A private offering of €325 million, of new 3.375% senior secured notes due 2026 (the “Euro Secured Notes”) at an issue price of 100.%.
  • Tranche 3: A private offering of €250 million, of new 5.5% senior ‘unsecured notes’ due 2026 at an issue price of 100%.

The financing will allow SGC governance to redeem its 7% – $2.1 billion corporate debt notes, due for payment in 2022.

SGC governance details that its new debt financing structure will save the corporation approximately $69 million in yearly ‘cash interest costs’, with the Nasdaq able to ‘extend maturities’ to 2025 and 2026.

Issuing a January corporate update, SGC informed investors that the gambling group would deliver full-year 2017 corporate net loss in the range of approximately $238-to-$248 million, improving on FY 2016 net loss of $354 million.

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