Scientific Games Corporation raising acquisition cash
Global gaming machines innovator Scientific Games Corporation has announced that it will be issuing $350 million in senior secured notes in order to help fund its pending acquisition of online games innovator NYX Gaming Group Limited.
Nasdaq-listed Scientific Games Corporation revealed late last month that it had agreed a deal to expand its digital gaming empire by paying out approximately $631 million in order to take full control of Las Vegas-based NYX Gaming Group Limited. The arrangement is also due to see the enlarged enterprise create a bespoke digital gaming and sports division headed by Matt Davey, Chief Executive Officer for NYX Gaming Group Limited, and set to include Leigh Nissim, Business-To-Business Interactive Managing Director for Scientific Games Corporation.
Las Vegas-based Scientific Games Corporation declared that the 5% senior secured notes, which are expected to be available until October 17, will come due in 2025 and are to be protected ‘by liens on the same collateral’ that underpins its existing credit agreements and a 7% offering that matures in 2022.
Should it fail to complete its purchase of Toronto-listed NYX Gaming Group Limited, Scientific Games Corporation stated that the net proceeds from the senior secured notes, which are to be registered under the Securities Act of 1933, will be utilized for ‘general corporate purposes’ that may encompass the ‘prepayment of term loan borrowings’ under its existing credit agreement.