Aristocrat strengthens liquidity with new US$500mln loan

May 18, 2020 Newsdesk Industry Talk, Latest News  

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Casino slot machine maker and digital casino games provider Aristocrat Leisure Ltd says it has priced a new US$500-million term-loan B facility, that will mature in October 2024. The aim was “further strengthening” of the group’s “liquidity and preserving its strong balance sheet metrics,” said the company in a Monday filing.

The loan was priced on May 14 and settlement is expected to occur on or around May 21. The proceeds will be used for general corporate purposes, stated the firm.

Aristocrat said the facility was “strongly supported by existing and new investors” and priced with a margin of 375 basis points. Following settlement of the exercise, Aristocrat’s total term-loan debt will amount to US$2.35 billion, added the firm.

“We are very pleased with the outcome of this debt raising which was significantly oversubscribed,” Aristocrat chief financial officer, Julie Cameron-Doe, said in prepared remarks.

Ms Cameron-Doe said the market continued to provide Aristocrat 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, the gaming supplier said it would be standing down about 1,000 staff and cutting down jobs, as part of efforts to “mitigate the impacts” of the coronavirus pandemic on the group’s business. The company also said it had decided to suspend its financial-year 2020 interim dividend.

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