By Paul A. Harris
Portland, Ore., Nov. 12 – Scientific Games Corp. priced $1.2 billion of senior notes (Caa1/B-) in two tranches on Tuesday, according to market sources.
The notes were sold via Scientific Games International, Inc.
The deal included $700 million of 8.5-year notes, which priced at par to yield 7%. The yield printed at the tight end of the 7% to 7¼% yield talk; initial talk was 7¼% to 7½%.
Scientific Games also priced $500 million of 10-year notes at par to yield 7¼%, at the tight end of the 7¼% to 7½% yield talk; initial talk was 7½% to 7¾%.
Bookrunners were J.P. Morgan Securities LLC, BofA Securities Inc., Deutsche Bank Securities Inc., BNP Paribas Securities Corp., Fifth Third Securities Inc., Barclays, RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc., Credit Suisse Securities (USA) LLC, Citizens Capital Markets Inc., Macquarie and Goldman Sachs & Co. LLC.
Proceeds, together with cash on hand and borrowings under the existing revolver, will be used to redeem all $1.2 billion of SGI's outstanding 10% senior notes due 2022 and all $244 million of SGI's outstanding 6¼% senior subordinated notes due 2020.
The issuer is a Las Vegas-based supplier of gambling products and technologies.
| Issuer: | Scientific Games International, Inc.
|
| Amount: | $1.2 billion
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., Deutsche Bank Securities Inc., BNP Paribas Securities Corp., Fifth Third Securities Inc., Barclays, RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc., Credit Suisse Securities (USA) LLC, Citizens Capital Markets Inc., Macquarie and Goldman Sachs & Co. LLC
|
| Trade date: | Nov. 12
|
| Settlement date: | Nov. 26
|
| Ratings: | Moody's: Caa1
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Quick to market
|
|
|
| Short maturity
|
| Amount: | $700 million
|
| Maturity: | May 15, 2028
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 512 bps
|
| Call protection: | 3.5 years
|
| Price talk: | 7% to 7¼%
|
|
|
| Long maturity
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| Amount: | $500 million
|
| Maturity: | Nov. 15, 2029
|
| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| Spread: | 533 bps
|
| Call protection: | Five years
|
| Price talk: | 7¼% to 7½%
|
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