Scientific Games Corporation has agreed with its lenders to amend an existing revolving credit facility. The amendment extends the covenant relief period for an additional three quarters from March 31, 2021, according to a filing last week.
As a result, the group’s subsidiary Scientific Games International Inc. “is not required to maintain compliance with the otherwise applicable consolidated net first lien leverage ratio covenant,” according to the agreement.
According to the filing, the revised consolidated net first lien leverage ratio will now be set at 6 times consolidated earnings before interest, taxation, depreciation and amortization (EBITDA), beginning with the fiscal quarter ending March 31, 2022. Such ratio will sequentially step down to 4.5 times consolidated EBITDA beginning with the first quarter of 2024 and thereafter, Scientific Game told GGRAsia.
The group had already negotiated an amendment to the same facility in May this year, which imposed a minimum liquidity requirement of at least US$275 million. The requirement excluded SciPlay, the company’s iGaming subsidiary.
