Scientific Games considers corporate refinancing
Scientific Games Corporation today announced selected Q4 2017 financial results amidst speculation that the company is looking to refinance a portion of its debts.
The company have confirmed that it aims to refinance this debt to “take advantage of favourable market conditions to lower its cost of debt and extend maturities”.
Should the company decide to proceed, it has stated that it will refinance approximately $1.4bn of its outstanding 7.0% senior secured notes which are due for payment in 2022 and approximately $185 million of borrowings under its revolving credit facility.
These current finance arrangements will be replaced with a combination of new senior secured term loans and new senior secured notes, as well as approximately $300m of new senior unsecured notes.
Initial company estimates expect company revenues to increase by 9% to between $820-$825m during the fourth quarter of 2017, while full year 2017 revenue is expected to rise by approximately 7%.
Company net losses for Q4 2017 are estimated to be between $40-$50m, with full year 2017 net losses of between $238m and $248m.
Announcing the selected results, Kevin Sheehan, CEO and President of Scientific Games, said: “Our preliminary results for the fourth quarter 2017 reflect our focus on generating top-line growth and ongoing improvements across our gaming, lottery and interactive operations.
“I am proud of the dedication and success achieved by the collaborative efforts of our Scientific Games colleagues around the globe who continue to empower our customers and deliver success for all our stakeholders.”
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