Scientific Games intends to get $250 million incremental term loan

By Sara Rosenberg

New York, Nov. 5 – Scientific Games Corp. plans on getting a $250 million incremental term loan for its acquisition of Bally Technologies Inc., according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

The incremental loan is in addition to the recently syndicated $2 billion seven-year incremental covenant-light term loan B-2 that is priced at Libor plus 500 basis points with a 1% Libor floor.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Fifth Third, HSBC Securities (USA) Inc. and PNC Capital Markets are the leads on the term loan B-2.

Under the agreement, Bally is being bought 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 will come from $2.9 billion of bonds.

Closing is anticipated by year’s end, subject to receipt of Bally shareholder approval, 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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