Light & Wonder, Inc. has priced a $1 billion issuance of senior unsecured notes through its subsidiary, Light and Wonder International, Inc. (LNWI), marking a significant financial move aimed at improving its long-term capital strategy. The 6.250% notes, due in 2033, were priced at par value (100.000%) in a private placement, and are expected to close on September 24, 2025, pending standard closing conditions.
Focused Use of Proceeds: Debt Reduction and Strategic Flexibility
The proceeds from this offering will be used to address multiple financial goals. First, LNWI plans to repay the full balance of its current revolving credit facility. Next, it will redeem $700 million of its 7.000% senior unsecured notes due 2028, including related fees. Any remaining funds may be directed toward general corporate purposes, which could involve share buybacks, according to the company.
The offering reflects a deliberate effort to manage debt maturities while also lowering the company’s interest burden. Replacing higher-rate 2028 notes with this lower-rate 2033 issuance is expected to enhance financial efficiency, especially as Light & Wonder sharpens its focus on online casino and cross-platform gaming.
New Notes Offer Lower Yield, Higher Term
Though the new notes are classified as senior, they are unsecured, meaning they are not backed by collateral. They will be guaranteed by Light & Wonder and select subsidiaries, aligning with standard corporate bond structures for non-investment-grade companies.
With a 6.250% coupon, the notes offer a slightly more favorable interest rate compared to the 7.000% 2028 notes they are replacing. Analysts see this as a strategic refinancing decision designed to reduce overall interest expense while extending the debt maturity timeline.
Strategic Moves Support Core Business Goals
This debt transaction underscores Light & Wonder’s evolving strategy. In recent years, the company has divested its lottery and sports betting divisions, allowing it to streamline operations and concentrate on iGaming and content development. The capital raised through the new offering could further support product innovation and international expansion in these sectors.
“This press release does not and will not constitute an offer to sell or the solicitation of an offer to buy the Notes,” the company clarified, noting that this is not a redemption notice for the 2028 notes either.
Restricted Offering to Qualified Investors
As part of a private placement, the notes will not be registered under the Securities Act of 1933 or applicable state laws. They will only be offered to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S. As such, the securities are not available to the general public and may not be sold in the U.S. without proper exemptions.
The offering further strengthens Light & Wonder’s presence in the capital markets and signals confidence in its business outlook. By refinancing high-cost debt and preparing for future growth, the company is positioning itself to maintain financial agility in a competitive gaming landscape.
Source:
“Light & Wonder Issues $1B in Senior Notes to Boost Financial Flexibility”, lcb.org, Sep 21, 2025.
The post Light & Wonder Prices $1B in Senior Notes for Debt Refinancing first appeared on RealMoneyAction.com.