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Scientific Games unit completes financing deals

Scientific Games Corp. said Feb. 14 that its wholly owned subsidiary Scientific Games International Inc. completed a series of financing transactions, including private offerings of dollar-denominated and euro-denominated senior notes.

The unit completed a private offering of $900 million additional aggregate principal amount of its 5.000% senior secured notes due 2025 at an issue price of 100.0%; a private offering of €325 million of new 3.375% senior secured notes due 2026 at an issue price of 100.0%; a private offering of €250 million of new 5.500% senior unsecured notes due 2026; and new 5.000% dollar notes, which are guaranteed on a senior basis, at an issue price of 100.0%.

Scientific Games International also closed a $900 million upsizing and repricing of its term loan B facility under its credit agreement. The transaction reduced the applicable interest rate on the term loans to LIBOR plus 275 basis points, which was a 50-basis-point reduction.

In addition, the subsidiary also completed an increase in the availability under the revolving credit facility to $620.2 million through Oct. 18, with a step-down in availability at that time to $445.7 million until the extended maturity date on Oct. 18, 2020.

Scientific Games said it intends to use the proceeds of the deals to redeem all $2.10 billion of the parent company's 7.000% senior secured notes due 2022 and to repay a portion of its loans under its revolving credit facility, among others.

The company, which develops technology-based products and services for gaming and lottery industries worldwide, expects to lower its annual cash interest cost by about $69 million at current rates through the financing transactions.