Scientific Game withdraws $250 million incremental term loan, shifts proceeds to secured notes

By Paul A. Harris

Portland, Ore., Nov. 14 – Scientific Games International Inc. withdrew its proposed $250 million incremental term loan from the market and shifted the proceeds to an upsized $950 million tranche of seven-year senior secured notes (Ba3/BB-) on Friday, according to a market source.

The notes, which priced at par to yield 7%, were part of an upsized $3.15 billion two-part high-yield notes transaction that also included $2.2 billion of 10% eight-year senior unsecured notes (Caa1/B) at 89.865 to yield 12%.

The overall bond deal size increased to $3.15 billion from $2.9 billion. The secured tranche was upsized to $950 million from $700 million.

The shift in proceeds to the secured bonds from the loan will not impact the company’s secured leverage or secured debt capacity, according to the source who added that there is no change expected to the credit ratings.

Proceeds from the bonds will be used to help fund the acquisition of Bally Technologies Inc. for about $5.1 billion, including about $1.8 billion of net debt.

Scientific Games is a New York-based developer of technology-based products and services and associated content for gaming and lottery markets. Bally Technologies is a Las Vegas-based provider of games, table game products, systems, mobile and iGaming services to gaming operators.

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