Published on 5/18/2009 in the Prospect News High Yield Daily.
New Issue: Scientific Games upsized $225 million 10-year notes priced at 96.823 to yield 9¾%
By Paul A. Harris
St. Louis, May 18 - Scientific Games International, Inc. priced an upsized $225 million issue of 9¼% 10-year senior subordinated notes (Ba3/BB/) at 96.823 to yield 9¾% on Monday, according to an informed source.
The yield was printed on top of yield talk while the issue price came within the 96.50 to 97.00 price talk.
The deal was upsized from $200 million.
J.P. Morgan Securities Inc., Banc of America Securities LLC, Credit Suisse Securities (USA) LLC and Goldman, Sachs & Co. were joint bookrunners for the quickly shopped Rule 144A and Regulation S with registration rights deal.
Proceeds will be used for general corporate purposes, including the repurchase of a portion of outstanding debt.
The issuer is a subsidiary of Scientific Games Corp., a New York-based provider of lottery systems and services.
| Issuer: | Scientific Games International, Inc.
|
| Face amount: | $225 million, upsized from $200 million
|
| Proceeds: | $217.852 million (approximate)
|
| Maturity: | June 15, 2019
|
| Security description: | Senior subordinated notes
|
| Bookrunners: | J.P. Morgan, Banc of America Securities LLC, Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co.
|
| Co-managers: | Cowen and Co. LLC, Daiwa Securities America Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, Mitsubishi UFJ Securities (USA), Inc.
|
| Coupon: | 9¾%
|
| Price: | 96.823
|
| Yield: | 9¾%
|
| Spread: | 653 bps
|
| Call features: | Make-whole at Treasuries plus 50 bps until June 15, 2014, then callable at 104.625, 103.083, 101.542, par on and after June 15, 2017
|
| Equity clawback: | 35% at 109.25 until June 15, 2012
|
| Change-of-control put: | 101%
|
| Trade date: | May 18
|
| Settlement date: | May 21
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 9¾% area, issued between 96.50 and 97.00
|
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