Bloomberg News

Scientific Games Gets Buyout Loan; Cablevision Seeks Refinancing

April 09, 2013

Scientific Games Corp. (SGMS:US) got $2.6 billion of bank debt to help fund an acquisition, while Cablevision Systems Corp. (CVC:US) is among companies tapping the loan market for refinancing.

Scientific Games, a supplier of lottery systems and instant tickets, received a $2.3 billion term loan and a $300 million revolving credit line from a group of banks, according to a regulatory filing today. Proceeds will be used to finance its $1.5 billion purchase of WMS Industries Inc., refinance debt and for general corporate purposes.

Bank of America Corp. is helping Cablevision arrange a $1.9 billion term loan to repay debt, according to a person with knowledge of the deal. The telecommunications and entertainment provider is offering 2.75 percentage points more than the London interbank offered rate, with no floor on the lending benchmark, said the person, who asked not to be identified because the deal is private.

“The leveraged loan primary market continues to remain skewed in favor of the borrower” as investor demand outstrips the supply of new loans, JPMorgan Chase & Co. said in an April 5 research report. “Borrowers are capitalizing on these conditions primarily by cutting pricing, addressing near term maturities, or returning capital to sponsors,” JPMorgan credit strategists wrote in the report.

Laureate Financing

KKR & Co.’s Laureate Education Inc., a provider of campus and Internet-based college education, is seeking a $310 million term loan to refinance 11.75 percent senior subordinated notes, according to a person with knowledge of the transaction. The loan, which matures in June 2018, will pay interest at 4 percentage points more than Libor with a 1.25 percent minimum on the lending benchmark, said the person, who asked not to be identified because the deal is private.

Lenders must let Citigroup Inc. know by 5 p.m. on April 11 in New York if they will participate in the deal, the person said.

Harland Clarke Holdings Corp., a provider of checks and marketing services, is seeking a $750 million covenant-light term loan to refinance debt, according to a person with knowledge of the matter. Regal Cinemas Inc., a movie-theater operator, is asking lenders to reduce the rate on a $988 million first-lien loan, according to a person with knowledge of the deal.

Blackstone Group LP’s Emdeon Inc. cut the rate it will pay on a $1.3 billion loan to 2.5 percentage points more than Libor, after initially seeking a margin of 2.75 percentage points to lower borrowing costs, according to a person with knowledge of the matter. There will be a 1.25 percent minimum on Libor for the health-care claims and payments processor.

Loan prices climbed 0.2 cent today, to 98.33 cents on the dollar, according to the Standard & Poor’s/LSTA U.S. Leveraged Loan 100 index. The debt is hovering near the highest level since July 2007.

To contact the reporter on this story: Christine Idzelis in New York at cidzelis@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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Companies Mentioned

  • SGMS
    (Scientific Games Corp)
    • $10.12 USD
    • -0.07
    • -0.74%
  • CVC
    (Cablevision Systems Corp)
    • $17.86 USD
    • 0.19
    • 1.06%
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