Brightstar Lottery is set to repay €342m (£293m) of existing debt due in 2028, using fresh borrowing to extend its repayment timetable.
The NYSE-listed lottery group intends to buy back approximately 68% of its €500m senior secured bonds following the close of its tender offer on 15 September. Settlement is expected on 18 September, subject to closing conditions, leaving €157.8m outstanding.
The buyback and accrued interest will be funded using part of the proceeds from a new €500m bond issue due in 2032. Remaining proceeds are earmarked for repaying revolving credit facilities and covering transaction costs.
The refinancing gives Brightstar more time to repay the debt being repurchased, although its new bonds carry a higher annual interest rate of 4.8%, compared with 2.3% on the existing bonds.
The transaction follows interim results showing new profits from operations of $119m, compared with a $52m loss a year earlier. Leadership maintains full-year guidance for revenue of $2.50bn–$2.55bn and adjusted EBITDA of $1.16bn–$1.19bn.
Brightstar on new timetable
However, the group’s debt position already reflects the final €1.4bn payment for its new nine-year Italy Lotto concession. Paid in April, the licence instalment helped lift net debt to $3.8bn at the end of June, from $2.7bn at the close of 2025.
Commercial prospects have been strengthened by the launch of digital lottery operations in São Paulo under a 15-year concession, with retail operations expected to follow later this year.
Brightstar’s focus on lottery follows the sale of its gaming and digital operations to Apollo funds and its subsequent rebranding from IGT. Of approximately $4bn in net sale proceeds, the group allocated $2bn to debt reduction and allocating a $1bn cash reward for existing investors.
Group CEO Vince Sadusky has emphasised continued investment in technology as Brightstar competes for major lottery concessions, in particular in North American markets. However he warned that Brightstar would not reduce its price to compete for discounted contracts, unlike many of its competitors.