Moody’s rates Scientific Games facilities, notes Ba3

Moody's Investors Service said it assigned Ba3 ratings to Scientific Games International, Inc.'s proposed a $534 extended revolver due 2020, a $3,441,000,000 term B-3 due 2021 and a $1 billion 7% senior secured note add-on due 2022.

Scientific Games Corp.’s B2 corporate family rating, B2-PD probability of default rating and SGL-2 speculative grade liquidity rating were affirmed.

The outlook is stable.

Proceeds from the proposed debt offerings will be used to refinance the company's existing revolver and term loans in full, and fund the redemption of the company's 8 1/8% senior subordinated debt due 2018 once these notes become callable in March 2017.

"The proposed transaction will improve SGI's financial flexibility in that it will reduce the company's annual interest expense as well as push out debt maturities," Moody’s senior vice president Keith Foley said in a news release.

"We expect this improved financial flexibility will support SGI's stated intention to accelerate its deleveraging efforts. This will be key to the company, which is weakly positioned within its current rating, to maintain its existing rating.”

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