Scientific Games Announces Pricing Of $3.15 Bln Of Senior Notes

(RTTNews) - Scientific Games Corp. (SGMS) said Friday that its indirect wholly owned subsidiary, SGMS Escrow Corp., has priced $3.15 billion in aggregate principal amount of new senior notes in its private offering in conjunction with the company's pending acquisition of Bally Technologies, Inc. (BYI).

The new senior notes will consist of $950 million in aggregate principal amount of 7.0% senior secured notes due January 1, 2022, and$2.2 billion in aggregate principal amount of 10.0% senior unsecured notes due December 1, 2022.

Scientific Games will receive about $933 million in net proceeds from the issuance of the Secured Notes and $2.156 billion in net proceeds from the issuance of the Unsecured Notes.

Scientific Games plans to use the net proceeds of the Notes offering, together with its and Bally's cash, $2.0 billion of incremental term loans under the previously disclosed escrow credit agreement and $200 million of borrowings under Scientific Games' revolving credit facility, to finance the Bally acquisition, including the refinancing of about $1.9 billion of Bally debt and the payment of fees and expenses related to the Bally acquisition and the financing transactions.

Upon the closing of the Notes offering, which is currently expected to occur on November 21, all of the financing required in connection with the Bally acquisition will have been completed.