Scientific Games Lottery reworks U.S. and euro term loan sizes

By Sara Rosenberg

New York, Feb. 3 – Scientific Games Lottery upsized its U.S. seven-year covenant-lite term loan B to $2.1 billion from $1.77 billion and downsized its euro seven-year covenant-lite term loan B to $500 million equivalent from $750 million equivalent, according to a market source.

Also, pricing on the U.S. term loan firmed at SOFR plus 350 basis points, the low end of revised talk of SOFR plus 350 bps to 375 bps and down from initial talk of SOFR plus 375 bps to 400 bps, and the original issue discount was tightened to 99.75 from 99.5, the source said.

Pricing on the euro term loan finalized at Euribor plus 400 bps, the low end of revised talk of Euribor plus 400 bps to 425 bps and down from initial talk of Euribor plus 425 bps.

As before, the U.S. term loan has a 0.5% floor, the euro term loan has a 0% floor and an original issue discount of 99.5, 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.

Previously in syndication, the discount on the euro term loan was set at the tight end of the 99 to 99.5 talk.

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.

Recommitments were scheduled to be due at 1 p.m. ET on Thursday, the source added.

Allocations are expected on Friday.

Proceeds will be used with $800 million of senior notes, downsized from $880 million with the U.S. term loan upsizing, and 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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