According to an 8K filed with the SEC, Credit Suisse is serving as administrative agent and collateral agent for Playtika, which entered into a seven-year, $1.9 billion term loan B and increased its revolving credit facility to $600 million with a new five-year maturity. Playtika also consummated its previously announced offering of $600 million aggregate principal amount of eight-year senior unsecured notes.
Playtika intends to use borrowings under the new term loan B, together with the net proceeds from the offering of the notes, to repay in full its existing $2.375 billion term loan B, to pay fees and expenses in connection with the refinancing transactions, and for general corporate purposes, including working capital, operating expenses, capital expenditures and the potential repayment of borrowings.
“We are pleased to take advantage of our healthy financial position and also leverage our recent successful IPO to refinance our term loan B,” Craig Abrahams, president and CFO of Playtika, said. “The refinancing is expected to generate significant savings. We anticipate that these transactions will reduce our annual cash interest by over $80 million, which should benefit our net income and earnings per share in 2021 as well as our free cash flow. With our current cash balance and upsized revolving credit facility, Playtika has approximately $1.5 billion in available liquidity at its disposal to further pursue growth investments and M&A opportunities.”
The new term loan B bears interest, at Playtika’s option, at a rate equal to LIBOR plus 2.75% or at a base rate plus 1.75%, subject to one 0.25% step-down based on Playtika’s credit ratings. The revolving credit facility bears interest, at Playtika’s option, at a rate equal to LIBOR plus 3% or at a base rate plus 2%, subject to three 0.25% step-downs based on Playtika’s first lien net leverage ratio. The senior unsecured notes bear interest at a fixed rate of 4.25%.
Playtika is a mobile gaming company and monetization platform with more than 34 million monthly active users across a portfolio of game titles.
