Scientific Games' $5.1bn Bally acquisition in doubt
A number of banks put off syndicating $3.19bn of loans that Scientific Games planned to use to acquire Bally Technologies
Scientific Games’ US$5.1bn acquisition of Bally Technologies was thrown into doubt yesterday after a number of banks put off syndicating $3.19bn of loans the firm had planned to use to help fund the takeover.
Bally Technologies confirmed to eGaming Review that several banks, including JPMorgan, Bank of America, and Deutsche Bank, which were hired by Scientific Games to sell a bridge loan, had failed to gather interest from investors.
Investors raised concerns that a global economic slowdown may impact the US, which could lead to Scientific Games facing interest rates that would increase every quarter, according to reports in Bloomberg.
Scientific Games revealed its acquisition of Bally Technologies back in August, which saw the gaming giant pay $83.30 per share for the supplier, putting the total value of the acquisition, which was due to complete early next year, at $5.1bn including $1.8bn of existing Bally debt.
Scientific Games’ share price fell 6.56% Monday to $9.26.
eGaming Review contacted Scientific Games but a spokesperson declined to comment.