Scientific Games Corporation says its wholly-owned subsidiary, Scientific Games International Inc (SGI), has successfully completed a private offering of US$550.0 million in aggregate principal amount of new 8.625% senior unsecured notes due 2025, at an issue price of 100.000%.
The notes form a key part of the company’s endeavors to boost liquidity in the face of COVID-19, having recently revealed it anticipates net cash outflow for the 30 June 2020 quarter of between US$70 million and US$90 million.
Proceeds from the offering will be used to redeem all US$340.6 million of SGI’s outstanding 6.625% senior subordinated notes due 2021 plus expenses, and to fund working capital and for other general corporate purposes.
Scientific Games revealed in April it had also boosted its liquidity position to ride out the COVID-19 storm by drawing down US$480 million under its revolving credit facilities and adding US$100 million in quarterly cost savings.
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