Scientific Games to Finance WMS Deal With $2.6 Billion of Loans

Scientific Games Corp. (SGMS), a supplier of lottery systems and instant tickets, received lender commitments to provide $2.6 billion in loans to help back its purchase of WMS Industries Inc. (WMS)

The financing includes a $2.3 billion term portion and a $300 million revolving credit line, according to a regulatory filing today.

Bank of America Corp., Credit Suisse Group AG, UBS AG and JPMorgan Chase & Co., Royal Bank of Scotland, Deutsche Bank AG, Goldman Sachs Group Inc. and HSBC Holdings Plc are providing the debt, according to the filing.

Scientific Games agreed in January to buy WMS Industries for $1.5 billion to create a global supplier of lottery equipment and slot machines.

WMS Inudsties expects that about $1.6 billion of funding is needed for the acquisition and to refinance or repay its outstanding debt, according to the filing. Scientific Games, based in New York, will also use the proceeds to refinance its own borrowings and for general corporate purposes, according to the filing.

Under a revolver, money can be borrowed again once it’s repaid; in a term loan, it can’t.

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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