The Gambling Giant, Scientific Games announced on November 27 that they have raised huge $1.2bn. The amount is raised as part of the private offering of the senior unsecured notes, confirmed the company. It just took two weeks for the company to raise the amount after it proposed the sale of the senior notes.
The company offered $700mn of the 7% senior unsecured notes. These notes were to reach maturity in 2028. It also offered $500mn of the 7.250% of unsecured notes that are due in 2029. Each of the notes was issued at 100% and the goal was reached in two weeks after it was first offered on November 14.
The company informed that the net proceeds of the offering will be combined with the available cash and also the money borrowed under the existing revolving credit line. It will be used to redeem all of the $1.2bn outstanding notes. All of these notes are 100% senior unsecured notes and these are due in 2022. It has been reported that it also includes $244mn of SGI notes at 6.250% of senior subordinated notes that are due in the next year. The money is going to be used for unpaid interest, related premiums, expenses, and fees as well.
Scientific Games and certain subsidiaries would give a guarantee on each note on a senior basis. However, they will be not secured as per the company.
However, the rapid share of the notes proves many experts wrong. Many believed that things are not going well in the SG especially after the company reported decreased earnings of $0.15 per share in the quarter ending on September 30. It also included a $3.85 loss per share in the third quarter of 2018.
It has also been reported that Scientific Games is expanding its OpenGaming Platform. They are partnering with Everi to launch the iGaming across Europe, Canada, Pennsylvania, and New Jersey. This would also help Everi to showcase the vast library they have to the world audience.
The news of the partnership came at the right time for SG. It announced the offerings and the news of the partnership were announced in the public domain. The opportunity was lucrative for the SG, its subsidiaries and as well as for the investors of the company. This would be a new ball game for the Scientific Games.
Dylan Slaney, the Spokesperson of the Scientific Games explained that they are thrilled to be part of this deal and partner with Everi. They are excited to bring the games of Everi to the iGaming market. Dylan further said that they would be pleased to share their ever-reliable and dependable platform for the third party content of Everi. He was obviously talking about the OGS Platform that has launched several iGaming contents before. He looked enthralled to launch the content of the Everi to the market. This would be an interesting situation for the SG fans as they would enjoy seamless and similar gaming experience on the same platform but of course with new engaging content. It is to be seen how the partnership shapes in the future.