Scientific Games adds more leads to $2.6 billion credit facility

By Sara Rosenberg

New York, Feb. 22 - Scientific Games Corp. added J.P. Morgan Securities LLC, RBS Securities Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. and HSBC Securities (USA) Inc. as leads on its $2.6 billion senior secured credit facility, joining Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and UBS Securities LLC, according to a PREM14A filed with the Securities and Exchange Commission on Friday.

The facility consists of a $300 million five-year revolver and a $2.3 billion seven-year term loan.

Based on prior filings, it is expected that the revolver will be priced at Libor plus 300 basis points with a 50 bps unused fee, and that the term loan will be priced at Libor plus 300 bps with a 1% Libor floor and include 101 repricing protection for one year.

Proceeds will be used to help fund the acquisition of WMS Industries Inc. for $26.00 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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