Scientific Games Corporation (SGC) has confirmed it will upgrade from $350 million to £550 million its previously announced senior unsecured debt note placement.
The debt placement will be carried by SGC’s Scientific Games International (SGI) global operating unit, priced at $550 million with an applied main aggregate of 8.6 percent due for repayment in 2025.
Net proceeds obtained from the up-sized offering will be used mainly to fund SGI’s outstanding $340 million debt-note offering due in 2021 and potential interest-related costs added to its previous deal.
It will use all remaining resources to raise working capital and finance general corporate purposes.
SGC and ‘certain subsidiaries’ will guarantee the SGI debt notes on a senior basis. The company expects to close the expanded placement, subject to customary conditions, on 1 July 2020.
Publishing its Q1 2020 trading results, SGC recorded $155 million in group operating losses, highlighting that all business segments had been affected by COVID-19 disruptions.
Led by Group CEO Barry Cottle, it has implemented a series of drastic cost-saving measures aimed at boosting $150 million in cash flows by 2020, in turn helping the company’s recovery prospects.