Global Cash Access reduces term loan B amount to $500 million

By Sara Rosenberg

New York, Nov. 25 – Global Cash Access Inc. downsized its six-year term loan B to $500 million from $800 million, according to a market source.

Pricing on the term loan is Libor plus 525 basis points with a 1% Libor floor and an original issue discount of 98˝.

The loan has 101 soft call protection for one year.

Earlier in syndication, pricing on the term loan was lifted from Libor plus 475 bps, the discount was revised from 99, the maturity was shortened from seven years and a secured leverage covenant was added to the initially covenant-light tranche.

The company’s now $550 million senior secured credit facility, down from $850 million, also includes a $50 million five-year revolver.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are the joint lead arrangers and bookrunners on the debt.

Proceeds will be used to help fund the acquisition of Multimedia Games Holding Co. Inc. for $36.50 per share, for an aggregate purchase price of about $1.2 billion in cash.

Other funds for the transaction are expected to come from bonds.

Closing is expected in early 2015, subject to customary conditions, including receipt of Multimedia Games shareholder approval and antitrust and gaming regulatory approvals.

Global Cash is a Las Vegas-based provider of fully integrated cash access solutions and related services to the gaming industry. Multimedia Games is an Austin, Texas-based developer and distributor of gaming technology.

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