SGC Considers ASX Listing As Strategic Option For Debt

SGC (Scientific Games Corporation) is reportedly considering strategic options for listing the company on the Australian Securities Exchange (ASX).

According to the Australian Financial Review (AFR), SGC has hired Sydney-based investment bank Jarden Australia to prepare the company’s path to ASX listing.

SGC’s long-term debt, which currently stands at $9.5 billion – more than $4 billion higher than the company’s market capitalisation of $5.40 billion – is detailed as one choice for debt reduction.

Following the leveraged purchase of casino slot and games maker Bally Technologies for $5.1 billion in 2014, SGC’s corporate debt ballooned to $8.5 billion.

The company’s debt load will grow even further in 2018, as SGC launched its SG Digital division with back-to-back acquisitions of OpenBet, NYX Gaming, and Don Best.

Debt reduction top priority

SGC CEO Barry Cottle had stated that debt reduction was a top priority for the organisation prior to the global covid pandemic.

However, as the pandemic threatened its commercial results, SGC drew on a new $500 million credit facility to get through 2020 trading.

Long-term investor Ron Perelman left the company in 2020, selling his 39 percent stake to Caledonia Investments, an Australian private equity firm, for $1 billion, as the US magnet wanted to reduce his exposure to high-risk investments.

Following Perelman’s departure, SGC named Jamie Odell, the former CEO of Aristocrat, as the new company chairman.

Despite SGC’s “strong Australian links,” news reports failed to mention whether the technology company will seek an outright or dual listing on the ASX, despite the fact that the company has been listed as a US Nasdaq enterprise since the 1980s.