Standard and Poor's Rates Scientific Games Notes 'BB-'

5/19/2009 by Gaming Industry Media Staff

Standard and Poor's Rating Service has issued a "BB-" rating for Scientific Games International Inc.'s proposed $200 million senior subordinated notes.

Standard and Poor's Rating service has issued a "BB-" rating for Scientific Games International Inc.'s proposed $200 million senior subordinated notes.

In addition to the corporate credit rating, the group issued a recover rating of '5' on the notes, which it said indicated expectation of a modest recovery for lenders in the event of a payment default.

On Monday, the Scientific Games Corporation subsidiary, announced that it had sold $225 million of its 9.25 percent senior subordinated notes due 2019 at an issue price of 96.8 percent, which was increased from its initial announcement of $200 million.

The group said it will use the net proceeds "for general corporate purposes, including the repurchase of a portion of its outstanding indebtedness."