Scientific Games Lottery sets price talk on U.S. and euro term loans

By Sara Rosenberg

New York, Jan. 26 – Scientific Games Lottery released price talk on its $1.77 billion seven-year covenant-lite term loan B and $750 million equivalent euro seven-year covenant-lite term loan B with its lender call on Wednesday, according to a market source.

Talk on the U.S. term loan is SOFR plus 375 basis points to 400 bps with a 0.5% floor and an original issue discount of 99.5, and talk on the euro term loan is Euribor plus 425 bps with a 0% floor and a discount of 99 to 99.5, the source said.

The term loans (B2/B+/BB-) have 101 soft call protection for six months and ticking fees of half the margin from days 61 to 120 and the full margin thereafter.

Deutsche Bank Securities Inc., Barclays, BNP Paribas Securities Corp., Credit Agricole, Macquarie Capital, RBC Capital Markets, BMO Capital Markets, Citigroup Global Markets Inc., Goldman Sachs, HSBC, Morgan Stanley Senior Funding Inc., MUFG, Societe Generale and Wells Fargo Securities LLC are the bookrunners on the deal. Deutsche is the administrative agent.

Commitments are due at 10 a.m. ET on Feb. 4.

Proceeds will be used with equity to fund the acquisition of the company by Brookfield Business Partners LP for about $5.8 billion.

Closing is expected in the second quarter, subject to customary conditions, including regulatory approvals.

Scientific Games Lottery is a lottery services and technology company.

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