SBC News Voice of the Sports Betting Industry
Scientific Games Corporation’s planned $5.1 billion (£3.25 billion) acquisition of Bally Technologies Inc has been put in doubt following an inability by Scientific Games investment syndicate to secure financing for its acquisition.
Bloomberg News reported that a contingent of financing banks including JPMorgan Chase, Deutsche Bank and Bank of America Corp had failed to gather the $3.19 billion (£2 billion) bridging loan needed to process the acquisition.
The investment banks hired by Scientific Games to underwrite the acquisition deal, had failed to secure interest from investors by the financing deadline of 3 October.
Bloomberg News noted that Scientific Games bridging loan faced concerns regarding its debt structure as US interest yields raised to their highest levels amid concerns of a global economic slowdown. Targeted investors were put off financing the loan as Scientific Games would face high interest rates which could raise in every quarter.
Bloomberg News noted that Scientific Games could still raise the acquisition capital if it chose to repay financing parties by issuing corporate bonds as repayments.
Scientific Games had revealed its planned acquisition of Bally Technologies in August, valuing the casino games supplier at $83.39 per share, Scientific Games had set out to complete the acquisition by early 2015.
