Global Cash Access expected to return with $700 million notes offering in January

By Paul A. Harris

Portland, Ore., Dec. 17 – Global Cash Access Holdings Inc. is expected to return in January with a $700 million two-part offering of high-yield notes, market sources said on Wednesday.

The deal, which ran an investor roadshow in early December, has been sidelined by market volatility that has shut down the primary market for over a week and is expected to push most, if not all, pending new issuance off into the new year, sources say.

When it was rolled out, the Rule 144A and Regulation S for life deal featured a $350 million tranche of senior secured notes due March 15, 2021 (B1/B+) and a $350 million tranche of senior unsecured notes due Jan. 15, 2022 (Caa1/CCC+). Both came with three years of call protection.

No new details or price talk have surfaced, sources said on Wednesday.

However early guidance on the deal had the secured notes whispered in the low 7% context and the unsecured paper coming with a high 10% yield, according to a trader.

BofA Merrill Lynch and Deutsche Bank Securities Inc. are the joint bookrunners. CIT Bank is a co-manager.

Proceeds will be used to help fund the acquisition of Austin, Texas-based gaming technology company Multimedia Games Holding Co. Inc. and to repay bank debt.

Global Cash is a Las Vegas-based provider of fully integrated cash access solutions and related services to the gaming industry.

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