Published on 8/9/2023 in the Prospect News High Yield Daily.
New Issue: Light and Wonder prices $550 million eight-year notes at par to yield 7½%
By Paul A. Harris
Portland, Ore., Aug. 9 – Light and Wonder International, Inc. priced a $550 million issue of eight-year senior notes (B3/B+/BB) at par to yield 7½% in a Wednesday drive-by, according to market sources.
The yield printed at the tight end of the 7½% to 7¾% yield talk. Initial guidance was 7¾% to 8%.
The deal enjoyed an enthusiastic reception, playing to $2 billion of orders, and traded to par 5/8 bid, 101 1/8 offered, a bond trader said.
J.P. Morgan Securities LLC was at the left of a syndicate of bookrunners, including Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, BofA Securities, Inc., Deutsche Bank Securities Inc., BNP Paribas Securities Corp., Fifth Third Securities Inc., RBC Capital Markets Corp., Barclays, Truist Securities, Inc., Citizens Capital Markets Inc. and Macquarie.
The Las Vegas-based company plans to use the proceeds to pay off its $550 million of outstanding 8 5/8% senior notes due 2025.
Light and Wonder International, formerly Scientific Games Corp., provides gambling products, technologies and services.
| Issuer: | Light and Wonder International, Inc.
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| Amount: | $550 million
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| Maturity: | Sept. 1, 2031
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| Securities: | Senior notes
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| Bookrunners: | J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, BofA Securities, Inc., Deutsche Bank Securities Inc., BNP Paribas Securities Corp., Fifth Third Securities Inc., RBC Capital Markets Corp., Barclays, Truist Securities, Inc., Citizens Capital Markets Inc. and Macquarie
|
| Coupon: | 7½%
|
| Price: | Par
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| Yield: | 7½%
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| Spread: | Treasuries plus 353 bps
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| First call: | Sept. 1, 2026 at 103.75
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| Trade date: | Aug. 9
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| Settlement date: | Aug. 23
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| Ratings: | Moody’s: B3
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| S&P: B+
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| Fitch: BB
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 7½% to 7¾%
|
| Marketing: | Drive-by
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