MELBOURNE, May 1 (Reuters Basis Point) - Terms have been
set for a A$1 billion ($943 million) loan for Australian gaming
company Tatts Group Ltds (TTS.AX), sources said on Thursday.
The deal, arranged by Commonwealth Bank of Australia
(CBA.AX), nabCapital (NAB.AX), Royal Bank of Scotland (RBS.L)
and Westpac Banking Corp (WBC.AX), divides into a A$200 million
one-year tranche A, a A$620 million three-year tranche B and a
A$180 million five-year tranche C.
Opening margins, calculated on a leverage matrix, are 75
basis points (bp), 90bp and 105bp over BBSY for tranches A, B
and C, respectively, based on a company net debt-to-EBITDA
leverage of 1.5 to two times.
There are four levels of participation: Senior lead
managers would receive a 30bp fee for A$150 million
commitments; lead managers would get 25bp for A$100 million;
managers would get 20bp for A$75 million and co-managers 15bp
for A$50 million.
Responses are due in late May. Australia and New Zealand
Banking group (ANZ.AX) has joined as an early bird participant.
The facility, which has not been underwritten by the four
leads, is being sold down on a best-efforts basis.
Tatts and competitor Tabcorp (TAH.AX) earlier this month
lost their duopoly to supply gaming machines in Victoria state
from 2012 onwards.
Tatts does not have a public rating, but has a debt profile
equivalent to a BBB+ rated corporate.
The terms are as follows:
Tatts Group Ltd
Facility type: (A) Working capital facility (B,C) Term
loan
Amount: A$1bn: (A)A$200m (B)A$620m (C)A$180m
Maturity: (A)1 year (B)3 years (C)5 years
Repayment: Bullet
Margin over: Debt-to-EBITDA>3 times: (A)117.5bp over
BBSY; (B)137.5bp over BBSY (C)157.5bp
over
BBSY;
2.5-3 times: (A)100bp (B)117.5bp (C)135bp
2-2.5 times: (A)85bp (B)100bp (C)120bp
1.5-2 times: (A)75bp (B)90bp (C)105bp
<1.5 times: (A)67.5bp, (B)82.5bp, (C)97.5bp
Repayment: (A,B,C) Bullet
Senior lead
management fee: 30bp for A$150m
Lead management
fee: 25bp for A$100m
Management fee: 20bp for A$75m
Co-management fee:15bp for A$50m
MLAs: Commonwealth Bank of Australia,
nabCapital,
Royal Bank of Scotland, Westpac Banking
Corp
Status: In process, responses due end May
($1=A$1.06)
(Reporting by Sharon Klyne)
