Light & Wonder Plans $1B Private Notes Offering to Cut Debt and Fuel Growth

Leading online casino game operator Light & Wonder Inc. (LNW) said it would issue up to $1 billion in senior unsecured notes in a private offering. Light & Wonder International Inc. (LNWI), its fully owned subsidiary, will issue the notes.

Due to the company’s limited press statement, investors and stakeholders were left wondering about the specifics and ramifications of the offering.

The impact and strategy of Light & Wonder’s $1 billion private offering
According to LNWI, the $1 billion offering’s revenues will be used for three things:

• Pay down all of your outstanding debts.
• Pay down $700 million in principal, fees, and costs on outstanding notes that are due in 2028.
• Pay for share repurchases and other general business needs.
• The money raised might also be used to help the business grow its line of online casino products and fortify its position in the world gaming sector.
• The notes pay a fixed interest rate on a regular basis, much like bonds do. Although LNWI acknowledged that the notes will mature in 2033, it did not specify the precise rate in their publication. Prior to this, the business issued notes with a 2028 maturity.

Due to their senior basis guarantee, the new notes will be given priority over previous financial commitments in the case of bankruptcy.

They are not secured by collateral, though, thus they are unsecured. In general, this raises risk, but investors might receive greater interest rates in exchange. For comparison, the interest rate on LNWI’s 2028 notes is 7%.

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