On September 24, 2025, Light & Wonder, Inc. (NASDAQ and ASX: LNW) announced the successful completion of a significant financial maneuver through its wholly owned subsidiary, Light and Wonder International, Inc. (LNWI). The company conducted a private offering of $1 billion in aggregate principal amount of new 6.250% senior unsecured notes due 2033. These notes were offered at an issue price of 100.000%, marking a pivotal step in the company’s ongoing strategy to manage and optimize its capital structure.

2. Purpose of the Proceeds

The net proceeds from this notes offering are earmarked for several strategic financial actions aimed at enhancing the company's fiscal health:

Repayment of Credit Facility: A portion of the proceeds will be utilized to repay all outstanding borrowings under LNWI’s revolving credit facility. This move is expected to reduce interest expenses and improve liquidity.

Redemption of Existing Notes: The company plans to redeem all $700 million of its outstanding 7.000% senior unsecured notes due 2028, along with related fees and expenses. This step is integral in lowering the overall cost of debt and extending the maturity profile of its liabilities.

General Corporate Purposes: Any remaining net proceeds will be allocated for general corporate purposes, including potential repurchases of the company’s equity. This flexibility allows the company to adjust its capital allocation strategy as market conditions evolve.

3. Structure and Guarantees of the Notes

The newly issued notes are guaranteed on a senior basis by Light & Wonder and certain subsidiaries, although they are classified as unsecured. This structure provides investors with a degree of confidence regarding the company’s commitment to meet its obligations.

It’s important to note that these notes have not been registered under the Securities Act of 1933 or any state securities laws. They may only be offered or sold in the U.S. to qualified institutional buyers under Rule 144A, and to non-U.S. persons under Regulation S. This regulatory framework highlights the targeted nature of the offering, focusing on institutional investors who are deemed capable of assessing the associated risks.

4. Strategic Implications

The successful completion of this notes offering underscores Light & Wonder’s proactive approach to financial management in a rapidly evolving gaming and entertainment landscape. By addressing existing debt obligations and enhancing liquidity, the company positions itself for future growth opportunities.

Furthermore, the move to potentially repurchase equity indicates a commitment to returning value to shareholders, reflecting confidence in the company’s long-term prospects. As Light & Wonder continues to innovate and expand its offerings across diverse gaming platforms, maintaining a robust balance sheet will be crucial.

5. About Light & Wonder

Light & Wonder, Inc. stands as a leader in the global gaming industry, leveraging its three complementary business segments to deliver engaging experiences to players worldwide. With a dedicated workforce of over 6,500 professionals, the company is committed to both player responsibility and sustainable practices.

As the company navigates the complexities of the financial markets, its recent notes offering serves as a testament to its strategic foresight and commitment to financial stability.

6. Conclusion

The completion of the $1 billion notes offering represents a significant milestone for Light & Wonder, Inc., positioning the company for sustained growth and innovation in the competitive gaming sector. As it looks toward the future, the effective management of its capital structure will be crucial in maximizing shareholder value and enhancing its market position.

Original press release