Bear Stearns is planning to come to market with a $360 million refinancing forScientific Games. The New York-based maker and operator of wagering equipment and instant lottery systems, formerly known as Autotote, is looking to take advantage of improved ratings in order to achieve better pricing, according to a banker. Moody's Investors Service and Standard & Poor's upgraded the company's ratings to Ba3/BB- in August. Calls to DeWayne Laird, cfo, were not returned by press time.
The credit replaces a $345 million facility backing Autotote's acquisition of Scientific Games in October 2000. That deal, which was led by Donaldson, Lufkin & Jenrette, consists of a $65 million revolver, a $60 million "A" term loan and a $220 million "B" term loan (LMW, 8/8/00). The pro-rata is priced at LIBOR plus 31/ 2%, and the "B" piece is priced at LIBOR plus 41/ 4%.
The new facility will consist of an $85 million revolver and a $275 million "B" term loan, the pricing of which is not yet available. The banker said pricing should improve over the existing credit as the company has demonstrated continued solid performance and has reduced its debt levels through a recent equity offering. Bear Stearns is expected to approach both existing and new lenders when it launches syndication within the next couple of weeks. Officials at Bear Stearns declined to comment.