Scientific Games Seeks $125 Million in Private Offering

Scientific Games International said Thursday that it has priced an additional US$125 million of its Senior Subordinate Notes for a private offering to institutional investors, with the proceeds being allocated for general purposes including any payment obligations for the new Italian instant ticket lottery concession.

At an issue price of 101.5%, the 9.25% senior subordinated notes due 2019 will rank on par with the company's existing $225 million aggregate principal amount of 9.25% senior subordinated notes due 2019.

The company intends to use the net proceeds from the offering for general corporate purposes which may include the payment of a portion of its potential obligations in connection with any award of a new Italian instant ticket lottery concession and the funding of any future acquisitions.

The announcement by the company on Thursday caused Moody's to downgrade its credit rating on Scientific Games to Negative from Stable. Moody's said the company's lower than expected earnings and increasing debt level made Scientific Games' credit worthiness outlook uncertain.

Shares in Scientific Games Corp. (Co. Profile) (NASDAQ:SGMS) will open for trading in New York this morning at $13.60 per share.