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Aristocrat sets incremental loan at Libor plus 200 bps, adds repricing
By Sara Rosenberg
New York, Sept. 14 – Aristocrat Leisure Ltd. set pricing on its $425 million seven-year incremental senior secured covenant-light term loan B at Libor plus 200 basis points, the low end of the Libor plus 200 bps to 225 bps talk, and added a request to reprice its existing $950 million senior secured covenant-light term loan B due Oct. 20, 2021 to Libor plus 200 bps with a 0% Libor floor from Libor plus 225 bps with a 0% Libor floor, according to a market source.
Also, the original issue discount on the incremental term loan was revised to 99.75 from 99.5, the source said.
The repricing is offered at par.
As before, the incremental term loan has a 0% Libor floor, 101 soft call protection for six months and amortization of 1% per annum.
The repriced loan will get 101 soft call protection for six months as well, the source continued.
Citigroup Global Markets Inc. is the sole arranger on the deal (Ba1/BB+). UBS Investment Bank is the administrative agent.
Commitments are due at 5 p.m. ET on Monday, the source added.
Closing is expected at the end of October.
Proceeds from the incremental loan will be used to help fund the acquisition of Plarium Global Ltd., a Herzliya, Israel-based social gaming company, for $500 million in cash and an earn-out arrangement payable to Plarium shareholders following the end of calendar years 2017 and 2018 based on 10 times LTM EBITDA at year-end.
Other funds for the transaction will come from existing cash.
The company is also seeking an amendment to the consolidated EBITDA definition in its credit agreement to include the ability to add back deferred revenues, net of platform fees.
Aristocrat Leisure is a Sydney, Australia-based provider of gaming services.
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