Nashville, Dec. 2 - Scientific Games Inc. sold an upsized $250 million of 20-year convertible senior subordinated notes at par to yield 0.75% with a 25% initial conversion premium via joint bookrunners Bear Stearns & Co. Inc. and JPMorgan Securities Inc.
The Rule 144A deal, upped from $225 million, priced at the middle of price talk for a 0.5% to 1.0% coupon and 22.5% to 27.5% initial conversion premium.
The New York City-based online betting and video poker company, which also provides ticket machines for lotteries and pari-mutual betting, said it would use proceeds to repay a portion of the term loan outstanding under its existing senior credit agreement and to finance a tender offer for its 12.5% senior subordinated notes due 2010.
The company also was expected to launch a new $300 million credit facility consisting of a $200 million senior revolver and $100 million senior term loan on Thursday, according to sources in the bank loan market.
Terms of the deal are:
| Issuer: | Scientific Games Inc.
|
| Issue: | Convertible subordinated notes
|
| Bookrunner: | Bear Stearns & Co. Inc. and JPMorgan Securities Inc.
|
| Amount: | $250 million, up from $225 million
|
| Greenshoe: | $25 million, unchanged
|
| Maturity: | Dec. 1, 2024
|
| Coupon: | 0.75%
|
| Price: | Par
|
| Yield: | 0.75%
|
| Conversion premium: | 25%
|
| Conversion price: | $29.10
|
| Conversion ratio: | 34.3643
|
| Contingent conversion: | 120% though 2019
|
| Contingent payment: | No
|
| Dividend protection: | Yes
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| Takeover protection: | Yes
|
| Call: | Non-callable for 5.5 years
|
| Put: | In years 5.5, 10 and 15
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| Price talk: | 0.5-1.0%, up 22.5-27.5%
|
| Pricing date: | Dec. 1, after the close
|
| Settlement date: | Dec. 23
|
| Distribution: | Rule 144A
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