Scientific Games launches $3.44 billion loan at Libor plus 375-400 bps

By Sara Rosenberg

New York, Feb. 1 – Scientific Games Corp. launched on its lender call on Wednesday a $3,441,000,000 covenant-light term loan B-3 due October 2021 that is talked at Libor plus 375 basis points to 400 bps with a 0.75% Libor floor, according to a market source.

Proceeds will be used to help refinance the company’s existing term loans B-1 and B-2 and 8 1/8% notes due 2018, to pay down revolver drawings and for general corporate purposes.

Rollover commitments from B-2 lenders are being offered the term loan B-3 at a par issue price, and commitments from B-1 lenders, who are extending their maturity by getting involved in the B-3 loan, are offered an original issue discount of 99.875, the source said.

The term loan B-3 includes 101 soft call protection for six months.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Fifth Third Bank, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc. and PNC are the leads on the deal.

Commitments are due at noon ET on Feb. 8, the source added.

Other funds for the refinancing will come from an offering of add-on 7% senior secured notes due 2022.

Scientific Games is a New York-based developer of technology-based products and services and associated content for gaming and lottery markets.

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