Leading software developer in Australia, Aristocrat Leisure Ltd., has just revealed the details of the valuation of a new $500 million TLB (Term Loan B) that to be settled after 4 years, in October 2024. This fresh loan was priced on the 14th of May, and the company currently expects a settlement by the 21st of May.
The newly priced loan is a key measure of maintaining the company’s clear-cut balance sheet metrics, vital in running the general operations of the company. Aristocrat revealed that various sponsors had backed the loan which stands at a 375 basis points margin. With this, Aristocrat’s debt currently stands at approximately $2.35 billion.
Julie Cameron-Doe, the current CFO at Aristocrat, commented on the new development, expressing her satisfaction with the results of the loan acquisition. She said that the TLB market has always provided Aristocrat with highly competitive and flexibly priced covenant-lite loans and that they were grateful for their support in the current debt market.
She added that the newly priced loan has been part of its key strategy in improving Aristocrat’s liquidity and its investment plan so that the company can cope with the adverse Covid-19 effects. The company was forced to lay-off about 1,000 employees, following the current Coronavirus pandemic that continues to take a toll on the gaming industry and world economy at large.
Aristocrat’s interim dividend for the current 2020 financial year also stands suspended. The company is, however, optimistic the situation will improve, having secured a Term Loan B to expand its liquidity.