XML 44 R19.htm IDEA: XBRL DOCUMENT v3.22.2
Long-Term and Other Debt
 6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Long-Term and Other Debt
Outstanding Debt and Finance Leases
The following table reflects our outstanding debt (in order of priority and maturity):
As of
June 30, 2022December 31, 2021
Final MaturityRate(s)Face valueUnamortized debt discount/premium and deferred financing costs, netBook valueBook value
Senior Secured Credit Facilities:
SGI Term Loan B-52024variable$— $— $— $3,982 
SciPlay Revolver2024variable— — — — 
SGI Revolver2027variable— — — — 
SGI Term Loan B2029variable2,200 (32)2,168 — 
SGI Senior Notes:
2025 Secured Notes20255.000%— — — 1,240 
2026 Secured Euro Notes20263.375%— — — 364 
2025 Unsecured Notes20258.625%550 (5)545 544 
2026 Unsecured Euro Notes20265.500%— — — 280 
2026 Unsecured Notes20268.250%— — — 1,090 
2028 Unsecured Notes20287.000%700 (8)692 692 
2029 Unsecured Notes20297.250%500 (6)494 494 
Other20234.089%3 — 3 4 
Total long-term debt outstanding$3,953 $(51)$3,902 $8,690 
Less: current portion of long-term debt(24)(44)
Long-term debt, excluding current portion$3,878 $8,646 
Fair value of debt(1)
$3,742 
(1) Fair value of our fixed rate and variable interest rate debt is classified within Level 2 in the fair value hierarchy and has been calculated based on the quoted market prices of our securities.
April 2022 Refinancing
On April 14, 2022, we completed a series of refinancing transactions, which, combined with other principal payments on the SGI Term Loan B-5 and SGI Revolver in April 2022, reduced the outstanding face value of our debt by $4,957 million, from $8,910 million as of March 31, 2022 to $3,953 million immediately after the completion of these transactions.
As a part of these transactions, we entered into the new credit agreements, which contains the following debt facilities:
•$2,200 million new term loan facility maturing in April 2029. The new term loan facility will bear interest at either (i) Adjusted Term SOFR Rate (as defined in the credit agreement) plus 3.00% per annum or (ii) a base rate plus 2.00% per annum. The new term loan facility amortizes in quarterly installments in aggregate amounts of equal to 1.00% of the original principal amount per year; and
•$750 million revolving credit facility maturing in April 2027. The new revolving credit facility will bear interest at either (i) Adjusted Term SOFR Rate (or an alternative benchmark rate for non-US dollar borrowings) plus 2.00% per annum or (ii) a base rate plus 1.00% per annum, with one 0.25% per annum step-up and one 0.25% per annum step-down based on SGI’s first lien net leverage ratio at the end of future fiscal quarters.
With the issuance of the new term loan facility and using the proceeds from the divestiture of the Lottery Business (see Note 1), we retired and redeemed the following outstanding debt and paid accrued and unpaid interest thereon plus related premiums, fees and expenses:
Debt instrumentInterest rateMaturityFace value as of March 31, 2022Paid interestPremium, other fees and expenses
SGI Term Loan B-5(1)
variable2024$4,008 $5 $33 
Senior Secured Notes5.000%20251,250 31 31 
Senior Secured Euro Notes3.375%2026361 2 6 
Senior Unsecured Euro Notes5.500%2026278 3 8 
Senior Unsecured Notes8.250%20261,100 7 45 
Total$6,997 $48 $123 
(1) Premium, other fees and expenses include fees associated with SGI Term Loan B.
The new credit facilities are subject to customary affirmative covenants and negative covenants as well as a financial covenant. The financial covenant is solely for the benefit of the new revolving facility, is tested at the end of each fiscal quarter if the outstanding borrowings (excluding up to $5 million of undrawn letters of credit and any cash collateralized letters of credit) under the new revolving facility exceed 30% of the commitments under the new revolving facility, and requires that the Company not be in excess of a maximum consolidated net first lien leverage ratio of 4.50:1.00.
We were in compliance with the financial covenants under all debt agreements as of June 30, 2022 (for information regarding our financial covenants of all debt agreements, see Note 15 in our 2021 10-K).
Loss on Debt Refinancing Transactions
The following are components of the loss on debt financing transactions resulting from debt extinguishment and modification accounting for the three and six months ended June 30, 2022. No such transactions occurred during the three and six months ended June 30, 2021.
Three and Six Months Ended
June 30, 2022
Repayment of principal balance at premium$90 
Unamortized debt (premium) discount and deferred financing costs, net57 
Total loss on debt refinancing transactions$147 
For additional information regarding the terms of our credit facilities, Secured Notes and Unsecured Notes, which were unaffected by the April 2022 Refinancing transactions, see Note 15 in our 2021 10-K.