Scientific Games ups term loan to $4.18 billion, firms spread

By Sara Rosenberg

New York, Jan. 31 – Scientific Games International Inc. upsized its covenant-light term loan B-5 due Aug. 14, 2024 to $4,175,000,000 from $3,775,000,000 and set pricing at Libor plus 275 basis points, the low end of the Libor plus 275 bps to 300 bps talk, according to a market source.

The term loan, which includes $900 million of incremental debt, still has a 0% Libor floor, an original issue discount of 99.75 for new dollars, a par issue price for rolled dollars and 101 soft call protection for six months.

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

Recommitments were scheduled to be due at 1:30 p.m. ET on Wednesday, the source said.

The company also upsized its U.S. note offering to $900 million from $500 million, and is still planning on getting €575 million in euro notes.

Proceeds from the loan and notes will be used to refinance an existing term loan B-4 and other existing debt. The additional proceeds raised will refinance the remaining 7% senior secured notes due 2022, to pay breakage costs and to repay revolver borrowings, the source added.

Scientific Games is a Las Vegas-based gaming and technology company.

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