Casino slot machine maker and interactive casino games provider Aristocrat Leisure Ltd says it has priced a new $500 million B term loan facility to mature in October 2024. The goal was to “further strengthen” the “liquidity” of the business, and maintain its good balance sheet metrics, the company said in a Monday filing.
The loan was priced on May 14, with payment scheduled to take place on or around May 21. The proceeds will be used for general business purposes, the firm said.
Aristocrat said the project was “strongly supported by existing and new investors” and priced at a 375 basis points margin. Aristocrat ‘s gross term loan debt will amount to US$ 2.35 billion after the settlement of the exercise, the firm added.
Aristocrat chief financial officer, Julie Cameron-Doe, said in prepared remarks: “We are very pleased with the outcome of this debt raising which was significantly oversubscribed.”
Ms Cameron-Doe said the industry still supplied Aristocrats with “flexibility and competitively-priced debt on a covenant-light basis”. She added: “The transaction is part of our ongoing strategy to further enhance our liquidity, continue to invest for growth and position the group to emerge strongly from the current Covid-19 related challenges.”
In late April, as part of efforts to “mitigate the impact” of the coronavirus pandemic on the group ‘s business, the gaming supplier said it would stand down about 1,000 workers and cut down jobs. The firm also said it had agreed to suspend its interim dividend for financial year 2020.