Scientific Games plans $2.5 billion credit facility for WMS purchase

By Sara Rosenberg

New York, Jan. 31 - Scientific Games Corp. plans on entering into a $2.5 billion credit facility to help fund its acquisition of WMS Industries Inc. and refinance credit facilities at both companies, according to a company presentation.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and UBS Securities LLC are leading the financing.

The facility consists of a $300 million revolver that is expected to be undrawn at close and a $2.2 billion seven-year term loan.

Pro forma leverage is around 5 times without synergies and about 4.4 times with synergies, the presentation said.

Under the agreement, Scientific Games is purchasing WMS for $26 in cash per common share or about $1.5 billion total.

Excluding anticipated synergies, the companies generated combined revenue of about $1.6 billion and combined attributable EBITDA of around $579 million over the trailing 12-month period ended Sept. 30, 2012.

Closing is expected by year-end, subject to approvals of WMS shareholders and gaming regulatory authorities and other customary conditions.

Scientific Games is a New York-based provider of customized, end-to-end gaming solutions to lottery and gaming organizations. WMS is a Waukegan, Ill.-based designer, manufacturer and marketer of video and mechanical reel-spinning gaming machines, video lottery terminals and in gaming operations.

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