Scientific Games Corporation has announced that its wholly owned subsidiary, Scientific Games International Inc (SGI), will commence a private offering of US$350 million of senior secured notes due 2025.
The net proceeds of the offering, together with cash on hand and borrowings under the company’s existing revolving credit facility, will be used to finance the company’s pending acquisition of NYX Gaming Group Limited and its subsidiaries, including the refinancing of indebtedness of NYX, and to pay related fees and expenses.
In an announcement, Scientific Games added that the offering of the notes was not conditioned upon consummation of the NYX acquisition, Scientific Games, adding that if the acquisition doesn’t go ahead the proceeds of the offering will be used for general corporate purposes, possibly including prepayment of term loan borrowings under the company’s existing credit agreement.
The notes will be guaranteed on a senior basis by Scientific Games and secured by liens on the same collateral that secures indebtedness under Scientific Games’ existing credit agreement and SGI’s 7.000% senior secured notes due 2022.
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