Light & Wonder plans to crush debt with $1 billion unsecured notes

Light & Wonder, Inc. has a new plan to repay its outstanding debt by offering $1 billion in “aggregate principal amount of senior unsecured notes.” These will be due in 2033, as a private offering. This comes as the firm became the first PAGCOR-licensed supplier for e-gaming in the Philippines this week.

An unsecured note can be a risky type of investment, as it is designed to flush a company with cash while it sorts out its finances. These will mature in 2033, with Light & Wonder paying interest along the way and repaying the principal at maturity. However, the risk here is that there’s no collateral or security around the note, so it highly relies on Light & Wonder being able to have the cash.

In the press release, Light & Wonder states that part of its three-pronged proposal for the cash is to “redeem all $700.0 million of LNWI’s outstanding aggregate principal amount of its 7.000% senior unsecured notes due 2028… including related fees and expenses.”

Light & Wonder seeks $1 billion to pay off debt

The other two prongs are to repay all outstanding borrowings “under its revolving credit facility.” Light & Wonder will also use the remaining proceeds for “corporate purposes,” which may include repurchases of the company’s equity.

As Light & Wonder joins the gaming market in the Philippines, its Vice President of Commercial Magdalena Podhorska-Okolow said the company wouldn’t be “reinventing the wheel.”

“We’ve had a lot of relationships, and we know what’s working in the market today,” she said.

“We know which game families are working. We know which games the Filipino players have learned to love over the years, and these are the games and the IP that we’ll be bringing digital versions of.”

The company has gone through some internal restructuring in the last few months. In June, it made significant changes to its legal team, while in April, it acquired a 20% stake in Bang Bang Games, a UK slot company. Also in April, the company was facing legal scrutiny over its games, with some games being found to potentially be in violation of copyright infringement. The company also found itself in infringement territory with its roulette games.

Featured image: Light & Wonder

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