Scientific Games sets $3.29 billion term B-3 at Libor plus 400 bps

By Sara Rosenberg

New York, Feb. 9 – Scientific Games Corp. firmed pricing on its $3,291,000,000 covenant-light term loan B-3 (Ba3/B+) due October 2021 at Libor plus 400 basis points, the high end of the Libor plus 375 bps to 400 bps talk, according to a market source.

Proceeds will be used to help refinance the company’s existing term loans B-1 and B-2 and 8 1/8% notes due 2018, to pay down revolver drawings and for general corporate purposes.

As before, the term loan has a 0.75% Libor floor, a par issue price for B-2 lenders that rolled their commitments, an original issue discount of 99.875 for B-1 lenders, who are extending their maturity by getting involved in the B-3 loan, and 101 soft call protection for six months.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Fifth Third Bank, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc. and PNC are the leads on the deal.

Other funds for the refinancing will come from the issuance of $1.15 billion of add-on 7% senior secured notes due 2022.

Scientific Games is a New York-based developer of technology-based products and services and associated content for gaming and lottery markets.

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