Scientific Games announces $1bn private note offering

n effort to restructure its existing debts, worldwide gaming goliath, Scientific Games Corporation have announced that they will sell over $1.075bn in long term debt notes to investors in a private offering.

These debts notes include over $500m of 5% senior secured notes, €325 million of senior secured notes and €250 million of senior unsecured notes.

The $500m in 5% senior secured notes which will be due for payment in 2025 will be included in the same series of debts as a previously issued $350m of notes which are also due for payment in 2025.

Both the €325m of senior secured notes and the €250m senior unsecured notes are due for payment in 2026.

Scientific Games has confirmed its intention to use the net proceeds of the new notes offering, together with borrowings under the term loan B facility of its credit agreement to redeem a portion of its outstanding 7% senior secured notes, which are due for payment in 2022.

It will also pay accrued and unpaid interest, plus any related premiums, fees and costs, and pay related fees and expenses of the new notes offering and for general corporate purposes.

The new notes will not be registered under the US Securities Act 1933 or under any state securities laws and therefore cannot be offered or sold in the United States except where an exemption applies.

In addition the new notes are not being offered, sold or otherwise made available to any retail investor in the European Economic Area.