September primary calendar building as Hardware Holdings emerges with new loan plans

By Sara Rosenberg

New York, Aug. 29 – Hardware Holdings LLC came out with plans to bring a new deal to the primary market right after the Labor Day holiday weekend, joining previously announced September deals for PGT Inc. and Aristocrat Leisure Ltd.

Hardware deal surfaces

Hardware Holdings joined the near-term calendar, setting a bank meeting for Wednesday to launch a $155 million seven-year term loan B, according to a market source.

Barclays is leading the deal that will be used to fund the acquisition of Jones Stephens and to refinance existing debt.

Senior secured and total leverage is 5.7 times, the source remarked.

The borrowers on the loan are HBC Holding LLC, Handy Holdings LLC and Plumbing Holdings Corp.

Hardware Holdings is a Cranbury, N.J.-based distributor of hardware, plumbing and houseware products.

PGT on deck

Another deal coming soon is PGT, with its bank meeting set for 10 a.m. ET in New York on Thursday.

As previously reported, the company is launching a $235 million credit facility split between a $35 million five-year revolver and a $200 million seven-year term loan B.

Deutsche Bank Securities Inc. and KeyBanc Capital Markets Inc. are leading the deal that will be used with cash on hand to fund the acquisition of CGI Windows & Doors Holdings Inc. for roughly $111 million from Cortec Group Fund IV LP, to refinance existing debt, and for working capital and general corporate purposes.

Closing is expected in September, subject to customary conditions.

PGT is a North Venice, Fla.-based manufacturer and supplier of residential impact-resistant windows and doors. CGI is a Miami-based manufacturer of impact-resistant windows and doors.

Aristocrat readies deal

Aristocrat Leisure will be holding a bank meeting on Sept. 10 to launch a $1.3 billion seven-year term loan B.

UBS Securities LLC, Bank of America Merrill Lynch, Nomura and Citigroup Global Markets Inc. are leading the deal that will be used to fund the acquisition of Video Gaming Technologies Inc. for around $1,283,000,000 in cash.

The transaction is subject to certain adjustments and regulatory approvals.

Aristocrat Leisure is an Australia-based provider of gaming services. Video Gaming Technologies is a Franklin, Tenn.-based designer, manufacturer, distributor and operator of gaming player terminals and centrally determined gaming systems.

Scientific Games plans meeting

In addition, Scientific Games Corp. is expected to hold a loan lender meeting on Wednesday, a market source recently told Prospect News, adding that official details are not yet available.

In early August, the company said that it would be getting $2,085,000,000 of incremental senior secured bank debt, consisting of a $1,735,000,000 seven-year incremental term loan and a $350 million five-year incremental revolver, and would be amending its existing $2,294,000,000 senior secured term loan and existing $300 million senior secured revolver to allow for the new debt.

Based on filings with the Securities and Exchange Commission, the term loan is expected at Libor plus 375 bps with a 1% Libor floor and 101 soft call protection for six months, and the revolver is expected at Libor plus 300 bps.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are the lead banks on the debt.

Scientific Games buying Bally

Proceeds from Scientific Games’ incremental bank debt will be used to help fund the acquisition of Bally Technologies Inc. for $83.30 per share in cash, for a total transaction value of about $5.1 billion, including net debt of around $1.8 billion.

Other funds for the transaction are anticipated to come from $750 million of senior secured notes, $2.2 billion of eight-year senior unsecured notes and $500 million of 10-year senior unsecured notes.

The notes are backed by a $3.45 billion one-year bridge loan commitment, split between a $750 million senior secured tranche priced at Libor plus 475 bps with a 1% Libor floor, a $2.2 billion unsecured eight-year tranche priced at Libor plus 625 bps with a 1% Libor floor, and a $500 million unsecured 10-year tranche priced at Libor plus 675 bps with a 1% Libor floor. The spread on all tranches will increase by 50 bps every three months until it hits a specified cap.

Closing is expected in early 2015, subject to receipt of Bally shareholder approval, antitrust and gaming regulatory approvals and other customary conditions.

Scientific Games is a New York-based developer of technology-based products and services and associated content for gaming and lottery markets. Bally Technologies is a Las Vegas-based provider of games, table game products, systems, mobile and iGaming services to gaming operators.

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