Scientific Games completes financing transactions

16 February 2018

Scientific Games has revealed that its Scientific Games International subsidiary has completed a series of financing transactions.

The latest transactions include a private offering of $900m (€720.3m) additional aggregate principal amount of its 5.000% senior secured notes due in 2025 at an issue price of 100.0%.

The company also finalised a private offering of €325m of new 3.375% senior secured notes due 2026 at an issue price of 100.0%, as well as a private offering of €250m of new 5.500% senior unsecured notes due 2026 at an issue price of 100.0%.

Scientific Games International also signed off on a $900m upsizing and repricing of its term loan B facility under a credit agreement that reduced the applicable interest rate on the term loans to LIBOR plus 275 basis points, representing a 50-basis point reduction.

In addition, the firm agreed an increase in the availability under the revolving credit facility to $620.2m through to October 18 this year, with a step-down in availability at this date to $445.7m until the extended maturity date on October 18, 2020.

Scientific Games said the net proceeds of the financing transactions will be used to redeem all $2.1bn of its 7.000% senior secured notes due 2022, as well as to repay a portion of the borrowings under its revolving credit facility.

Including the effect of cross-currency interest rate swap arrangements, the firm said that the net impact of the financing transactions will be to lower its annual cash interest cost by around $69m at current rates, while also extending maturities of $2.1bn of its debt from 2022 to 2024, 2025, and 2026.

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