Las Vegas-based Global Cash Access Holdings Inc (GCA) intends to offer US$350 million of senior secured notes due 2021 and US$350 million of senior unsecured notes due 2022 in a private offering. The offering will be done via its wholly owned subsidiary, Global Cash Access Inc.
GCA intends to use the net proceeds to finance the acquisition of Multimedia Games Holding Co Inc, the firm said in a statement on Friday.
The company said it will also use borrowings under a new US$60 million, five-year senior secured revolving credit facility, and a US$500 million, six-year senior secured term loan, as well as cash on hand to finance the deal.
GCA, which supplies cash processing technology and related services to the gaming industry, announced in September it was acquiring Multimedia Games for US$1.2 billion in cash.
Shareholders of Multimedia Games, which makes and supplies systems, content and electronic gaming units for casinos, last week approved the takeover.
The announcement of the notes offering comes after the Nevada Gaming Control Board recommended approval of the acquisition following a hearing on Thursday. It also approved the application for deregistration of Multimedia Games as a publicly traded company.
GCA representatives told regulators Nevada’s sign-off on the merger would be the final approval needed to close the deal, the Las Vegas Review-Journal reported.
“We … look forward to what the combined company will bring,” said Control Board chairman A.G. Burnett, according to the newspaper.
The Nevada Gaming Commission is now expected to rule on the deal on December 18.
Upon the closing of the transaction, Multimedia Games shareholders will be entitled to receive US$36.50 in cash for each share of common stock owned at the time of the transaction’s closing. That is a 31 percent premium to the closing stock price as of September 5.
The combined company’s headquarters will remain in Las Vegas and its game development operations will be based in Austin, Texas, where Multimedia Games has its headquarters.
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