Stars updates U.S. and euro loan sizes, cancels pound sterling tranche

By Sara Rosenberg

New York, June 28 – Stars Group Inc. sized its U.S. seven-year covenant-light term loan B at $3,575,000,000 and its euro seven-year covenant-light term loan B at €850 million, and cancelled plans for a £400 million seven-year covenant-light term loan B, according to a market source.

At launch, the term loan debt was described as a total of $4,975,000,000 equivalent split between a U.S. dollar tranche, a €1 billion tranche and the now dropped £400 million tranche.

Pricing on the euro loan was increased to Euribor plus 375 basis points from Euribor plus 350 bps, the source said.

The euro loan still has a 0% floor and an original issue discount of 99.5, the U.S. loan remained priced at Libor plus 350 bps with a 0% Libor floor and an original issue discount of 99.5, and both loans still have 101 soft call protection for six months.

Talk on the pound sterling piece had been Libor plus 425 bps with a 0% Libor floor and a discount of 99.5.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Macquarie Capital (USA) Inc., Barclays, BMO Capital Markets and J.P. Morgan Securities LLC are the bookrunners on the deal.

Books were scheduled to close at the end of the day on Thursday, the source added.

Allocations are expected on Friday.

Proceeds will be used to help fund the acquisition of Sky Betting & Gaming from CVC Capital Partners and Sky plc for about $4.7 billion, of which $3.6 billion is payable in cash and the remainder is payable in around 37.9 million newly issued common shares.

Other funds for the transaction will come from $1 billion in senior notes, which were upsized from $750 million.

Closing is expected in the third quarter, subject to regulatory approvals and customary conditions.

Stars Group is a Toronto-based provider of technology-based products and services in the gaming and interactive entertainment industries. Sky Betting is an online betting and gaming company.

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