Scientific Games $2.6 billion facility expected at Libor plus 300 bps

By Sara Rosenberg

New York, Feb. 5 - Scientific Games Corp. anticipates that its $2.6 billion senior secured credit facility will be priced at Libor plus 300 basis points, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

The facility consists of a $300 million five-year revolver with a 50 bps unused fee and a $2.3 billion seven-year term loan with a 1% Libor floor and 101 repricing protection for one year.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and UBS Securities LLC are leading the financing.

Proceeds will be used to help fund the acquisition of WMS Industries Inc. for $26 in cash per common share or about $1.5 billion total, and refinance credit facilities at both companies.

Pro forma leverage is around 5 times without synergies and about 4.4 times with synergies.

Excluding anticipated synergies, the companies generated combined revenue of about $1.6 billion and combined attributable EBITDA of around $579 million over the trailing 12-month period ended Sept. 30, 2012.

Closing is expected by year-end, subject to approvals of WMS shareholders and gaming regulatory authorities and other customary conditions.

Scientific Games is a New York-based provider of customized, end-to-end gaming solutions to lottery and gaming organizations. WMS is a Waukegan, Ill.-based designer, manufacturer and marketer of video and mechanical reel-spinning gaming machines, video lottery terminals and in gaming operations.

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