Scientific Games $2.3 billion term B flexed up to Libor plus 325 bps

By Sara Rosenberg

New York, May 22 - Scientific Games International Inc. raised pricing on its $2.3 billion seven-year covenant-light term loan B to Libor plus 325 basis points from talk of Libor plus 275 bps to 300 bps, according to a market source.

In addition, the ticking fee was revised to half the spread from days 31 to 60 and the full spread starting on day 61, from half the spread from days 31 to 90 and the full spread thereafter, the source said. There is no fee for days 0 to 30.

The term loan B still has a 1% Libor floor an original issue discount of 99½ and 101 soft call protection for six months.

Recommitments were due at noon ET on Wednesday, the source added.

The company's $2.6 billion senior secured credit facility (Ba2/BB-) also includes a $300 million five-year revolver.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and UBS Investment Bank are the arrangers on the deal.

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 to refinance credit facilities at both companies.

Net senior secured leverage is 3.2 times, and net total leverage is 4.5 times.

Closing on the acquisition is subject to WMS shareholder approval, which was already obtained, regulatory approvals and other customary conditions.

The credit facility is expected to fund in the fall.

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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