By Paul A. Harris
Portland, Ore., Jan. 31 – Scientific Games Corp. priced notes in an upsized three-part transaction on Wednesday, according to market sources.
The deal featured an upsized $900 million add-on to the Scientific Games International Inc. 5% senior secured notes due Oct. 15, 2025 (Ba3/B+) which priced at par with a 4.999% yield to maturity. The tranche was upsized from $500 million. The reoffer price came at the rich end of the 99.5 to par price talk.
J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., BofA Merrill Lynch, Fifth Third, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., PNC Capital Markets LLC, Macquarie Capital and Goldman Sachs & Co. were the joint bookrunners.
Also issuing via the Scientific Games International entity, the company priced a pair of euro-denominated tranches.
These included €325 million of eight-year senior secured notes (Ba3/B+) which priced at par to yield 3 3/8%. The yield printed at the tight end of yield talk in the 3½% area.
In an unsecured tranche, the company also price €250 million of eight-year senior notes (Caa1/B-) at par to yield 5½%. The yield printed in the middle of yield talk in the 5½% area.
Bookrunners Deutsche Bank will bill and deliver for the euro-denominated notes. JPMorgan, BofA Merrill Lynch, Fifth Third, Credit Suisse, Citizens, PNC, Macquarie and Goldman Sachs were also joint bookrunners.
The Las Vegas-based gaming technology company plans to use the proceeds, together with borrowings under its term loan B, to redeem a portion of its outstanding 7% senior secured notes due 2022.
| Issuer: | Scientific Games International Inc
|
| Trade date: | Jan. 31
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| Settlement date: | Feb. 14
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| Marketing: | Roadshow
|
|
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| Add-on
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| Amount: | $900 million, increased from $500 million
|
| Maturity: | Oct. 15, 2025
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| Security description: | Add-on to 5% senior secured notes due Oct. 15, 2025
|
| Bookrunners: | J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., BofA Merrill Lynch, Fifth Third, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., PNC Capital Markets LLC, Macquarie Capital, Goldman Sachs & Co.
|
| Coupon: | 5%
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| Price: | Par
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| Yield to maturity: | 4.999%
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| Spread: | 229 bps
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| First call date: | Oct. 15, 2020
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| Expected ratings: | Moody's: Ba3
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| S&P: B+
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| Distribution: | Rule 144A for life
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| Price talk: | 99.5 to par
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| Original issue: | $350 million priced at par to yield 5% in October 2017
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| Fungibility: | Add-on notes immediately fungible with original notes
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| Total issue size: | $1.25 billion
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|
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| Euro-denominated notes
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| Maturity: | Feb. 15, 2026
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| Bookrunners: | Deutsche Bank (bill and deliver), JPMorgan, BofA Merrill Lynch, Fifth Third, Credit Suisse, Citizens, PNC, Macquarie, Goldman Sachs
|
| Distribution: | Rule 144A and Regulation S for life
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|
|
| Euro senior secured notes
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| Amount: | €325 million
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| Coupon: | 3 3/8%
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| Price: | Par
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| Yield: | 3 3/8%
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| Call protection: | Three years
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| Ratings: | Moody's: Ba3
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| S&P: B+
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| Price talk: | 3½% area
|
|
|
| Euro senior unsecured notes
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| Amount: | €250 million
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| Coupon: | 5½%
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| Price: | Par
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| Yield: | 5½%
|
| Call protection: | Three years
|
| Ratings: | Moody's: Caa1
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| S&P: B-
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| Price talk: | 5½% area
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