Having earlier announced a senior unsecured debt note placement of $350m this week, Scientific Games Corporation has since opted to increase the offering to $550m. The new debt placement will be carried by SGC’s global operating unit Scientific Games International, with an applied principal aggregate of 8.6% due for repayment in 2025.
Net proceeds secured from the uprated placement will be primarily used to redeem the firm’s outstanding debt note placement of $340m 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 July 1 2020 subject to customary conditions.
Publishing its Q1 2020 trading results, SGC recorded group operating losses of $155m, highlighting that COVID-19 disruptions had impacted all business segments.
Led by Group CEO Barry Cottle, the company has implemented a series of drastic cost-saving measures designed to enhance 2020 cash flows by $150m, in turn helping the firm’s recovery prospects.
