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

By Sara Rosenberg

New York, Feb. 2 – Scientific Games Lottery revised price talk on its $1.77 billion seven-year covenant-lite term loan B to SOFR plus 350 basis points to 375 bps from SOFR plus 375 bps to 400 bps and on its $750 million equivalent euro seven-year covenant-lite term loan B to Euribor plus 400 bps to 425 bps from Euribor plus 425 bps, according to a market source.

Also, the original issue discount on the euro term loan was set at 99.5, the tight end of the 99 to 99.5 talk, the source said.

As before, the U.S. term loan has a 0.5% floor and an original issue discount of 99.5, the euro term loan has a 0% floor, and both 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 continue to be due at 10 a.m. ET on Thursday, the source added.

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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