Light & Wonder prices $1 billion in senior unsecured notes

LAS VEGAS - Light & Wonder, Inc. (NASDAQ and ASX:LNW) announced Wednesday that its wholly owned subsidiary, Light and Wonder International, Inc., has priced $1 billion in aggregate principal amount of 6.250% senior unsecured notes due 2033.

The notes were priced at an issue price of 100.000% in a private offering, according to a company press release. The offering is expected to close on September 24, 2025, subject to customary conditions.

The company intends to use the net proceeds to repay all outstanding borrowings under its revolving credit facility and to redeem all $700 million of its outstanding 7.000% senior unsecured notes due 2028. Any remaining proceeds will be used for general corporate purposes, which may include equity repurchases.

The notes will be guaranteed on a senior basis by Light & Wonder and certain subsidiaries but will not be secured. They will be offered only to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S of the Securities Act.

The notes will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States except pursuant to applicable exemptions from registration requirements.

Light & Wonder describes itself as a cross-platform global games company with approximately 6,500 employees across three complementary businesses.

In other recent news, Light & Wonder reported its second-quarter 2025 earnings, revealing an earnings per share (EPS) of $1.58, which surpassed the forecast of $1.36. However, the company experienced a revenue shortfall with actual revenue at $809 million, missing the consensus estimate of $851.1 million. Following this, Benchmark adjusted its price target for Light & Wonder to $90.00 from $100.00, maintaining a Buy rating despite the revenue miss. Additionally, JPMorgan downgraded Light & Wonder from Overweight to Neutral, citing concerns about the company’s growth potential and its revised EBITDA guidance for FY25. The guidance now ranges from $1.43 billion to $1.47 billion and includes contributions from the Grover acquisition. Meanwhile, Light & Wonder’s subsidiary, Light and Wonder International, announced plans to offer $1 billion in senior unsecured notes due 2033. The proceeds are intended to repay outstanding borrowings and redeem existing notes, with remaining funds possibly used for general corporate purposes. These developments highlight the company’s strategic financial maneuvers amidst evolving market conditions.

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