Light & Wonder Name, Stock Ticker Changes Complete
Light & Wonderâ€™s name change is legally official, and the slot machine manufacturerâ€™s shares now trade under the ticker â€śLNWâ€ť on the Nasdaq.
The company previously known as Scientific Games announced the rebranding in early March, and almost immediately began using the Light & Wonder name while temporarily retaining the stock ticker of â€śSGMS.â€ť As of today, Scientific Games and SGMS are no more.
The Light & Wonder name and branding reflects the Companyâ€™s strategic vision to become the leading cross-platform global game company focused on creating and launching great games fully cross-platform, leveraging our leading platforms and solutions to enable a seamless player experience,â€ť according to a statement issued by the company.
On a miserable day for broader equity benchmarks, shares of Light & Wonder slipped more than 3% on the companyâ€™s first day with the new ticker.
Rebranding Follows SG Lottery Sale
The companyâ€™s transformation to Light & Wonder was spurred in part by the sale of its SG Lottery unit to Brookfield Business Partners LP (NYSE:BBU) for $6.05 billion last October.
While that transaction resulted in the departure of a cash-generating, profitable business, it sets the stage for the company to focus on its land-based gaming opportunities, as well as fast-growing markets, such as online and social casinos.
â€śThrough a deliberate cross-platform approach, Light & Wonder delivers a leading portfolio of iconic games and franchises across online and mobile, and in both real money and free-to-play social gaming markets, as well as in land-based casinos,â€ť adds the Las Vegas-based company.
Light & Wonder Debt Savings Plan Paying Off
Light & Wonderâ€™s aforementioned sale of SG Lottery and the divestment of its OpenBet sports wagering technology unit are transactions aimed not only at honing the companyâ€™s focus on digital opportunities, but firming its balance sheet as well.
Data confirms that effort is paying dividends. Earlier this month, the gaming company said its outstanding debt is $4 billion, down sharply from $8.8 billion at the end of last year. Its net leverage is 3.9x, which is close to the desired range of 2.5x to 3.5x.
“The company retired its existing $4.0 billion term loan and redeemed $3.0 billion of its secured and unsecured notes using proceeds from the divestiture of the Lottery Business and a new $2.2 billion term loan facility,â€ť according to a statement. â€śIn conjunction with the new term loan, the company also entered into a new $750 million revolving credit facility.â€ť
Fitch Ratings placed a junk grade of â€śBBâ€ť on Light & Wonder. The firm will likely need to drive leverage below 3x to attain a credit upgrade. Higher credit ratings mean a company can issue debt with lower interest rates.
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