Business
Playtika Announces Closing of Debt Refinancing Resulting in Over $80 Million Annual Cash Interest Savings
New $1.9 Billion Term Loan B and $600 Million of Senior Unsecured Notes to Replace Existing $2.375 Billion Term Loan BRevolver Upsized to 5-year $600 Million
About this update from Playtika Holding Corp.
[{"type":"text","content":"New $1.9 Billion Term Loan B and $600 Million of Senior Unsecured Notes to Replace Existing $2.375 Billion Term Loan BRevolver Upsized to 5-year $600 Million FacilityCombined with IPO Proceeds, Company Has Approximately $1.5 Billion Available Liquidity HERZLIYA, Israel, March 11, 2021 (GLOBE NEWSWIRE) -- Playtika Holding Corp. (NASDAQ:PLTK) (“Playtika”) today announced it has entered into a 7-year $1.9 billion Term Loan B, increased its Revolving Credit Facility to $600 million with a new 5-year maturity and consummated its previously announced offering of $600 million aggregate principal amount of its 8-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,” said Craig Abrahams, Playtika’s President and Chief Financial Officer. “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 the London Interbank Offered Rate (“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 3.00% or at a base rate plus 2.00%, 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%. The notes and the related guarantees have not been and will not be registered under the U.S. Securities Act of 1933, as amended (t...