Published on 2/3/2022 in the Prospect News High Yield Daily.
New Issue: Scientific Games prices downsized $800 million 6 5/8% eight-year notes at par
By Paul A. Harris
Portland, Ore., Feb. 3 – Scientific Games Holdings LP priced a downsized $800 million issue of eight-year senior notes (Caa2/B/B) at par to yield 6 5/8% on Thursday, according to market sources.
The issue size decreased from $880 million.
The yield printed in the middle of the 6½% to 6¾% price talk and well inside of initial guidance in the 7% area.
Joint bookrunner Barclays will bill and deliver. Deutsche Bank Securities Inc., BNP Paribas Securities Corp., Credit Agricole CIB, Macquarie Capital (USA) Inc., RBC Capital Markets LLC, BMO Capital Markets Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, MUFG, SG Americas Securities LLC and Wells Fargo Securities LLC are also joint bookrunners.
The $80 million of proceeds extracted from the bond offer was shifted to a concurrent syndicated loans.
Proceeds will be used to finance the acquisition of the Las Vegas-based supplier of gambling products and services by Brookfield Business Partners LP.
| Issuer: | Scientific Games Holdings LP
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| Amount: | $800 million, decreased from $880 million
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| Issue: | Senior notes
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| Maturity: | March 1, 2030
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| Joint bookrunners: | Barclays (bill and deliver), Deutsche Bank Securities Inc., BNP Paribas Securities Corp., Credit Agricole CIB, Macquarie Capital (USA) Inc., RBC Capital Markets LLC, BMO Capital Markets Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, MUFG, SG Americas Securities LLC and Wells Fargo Securities LLC
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| Coupon: | 6 5/8%
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| Price: | Par
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| Yield: | 6 5/8%
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| Spread: | 484 bps
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| First call: | March 1, 2025 at 103.313
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| Trade date: | Feb. 3
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| Settlement date: | Feb. 17
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| Ratings: | Moody's: Caa2
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| S&P: B
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| Fitch: B
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 6½% to 6¾%
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| Marketing: | Roadshow
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