Aristocrat Leisure Limited, the Australian slot machine maker and games provider, announced it priced a new US$500 million Term Loan B facility that will mature in October 2024. The loan was reportedly priced on May 14 and the company expects it to be settled by May 21.
The transaction is a way of preserving the company’s strong balance sheet metrics, and the proceeds are meant for general corporate purposes.
The company stated the investors support the loan, and the facility was priced with a margin of 375 basis points. This development leaves Aristocrat’s debt at around US$2.35 billion.
“The TLB market continues to provide Aristocrat with flexibility and competitively priced debt on a covenant light basis, and we are grateful for the ongoing support of this important debt market,” said Aristocrat CFO Julie Cameron-Doe.
The company also stated the transaction is part of an ongoing strategy to enhance liquidity and an investment to the group’s growth in order to better withstand challenges that COVID-19 caused in the industry.
In April, Aristocrat had to let go nearly 1,000 employees as part of the strategy to navigate the pandemic.
The company’s interim dividend for the 2020 financial year has also been suspended. The new loan is another way to alleviate the impact the global shutdown has had on the group’s business.