Light & Wonder has revealed that it is refinancing existing debt. The gambling supplier received more than $2.13bn in term loans that mature in April 2029 to do so, as part of an amendment to a 2022 credit agreement.
The global gambling supplier’s move will lower the interest rate it pays on this debt. It didn’t reveal the original margin, but the filing did mention it is now 2% annually, or 1% with an alternative base rate.
hoped to clear high-interest long-term debt accumulated from a raft of acquisitions
Light & Wonder took out the original loan following the sale of its sports betting and lottery divisions, back when the company was known as Scientific Games. It hoped to clear high-interest long-term debt accumulated from a raft of acquisitions and to create a financial structure whereby it could expand operations if necessary.
The sports betting division named OpenBet was sold in 2021 to Endeavor Group for about $1.2bn. Then the lottery business was sold in April 2022 to Brookfield Business Partners for $6.05bn. It is now operating under the Scientific Games name. Light & Wonder now predominantly focuses on casino and gaming technology.
