Playtika announces the closing of the debt refinancing resulting in
- New $ 1.9 billion B term loan and $ 600 million unsecured senior notes to replace the existing $ 2.375 billion B term loan
- Revolver enlarged to 600 million dollars over 5 years
- Combined with the proceeds of the IPO, the company has approximately $ 1.5 billion in cash on hand.
HERZLIYA, Israel, March 11, 2021 (GLOBE NEWSWIRE) – Playtika Holding Corp. (NASDAQ: PLTK) (“Playtika”) today announced that it has entered into a $ 1.9 billion 7-year B term loan, increased its revolving credit facility to $ 600 million with a new term of 5 years and completed its previously announced offering of a total principal amount of $ 600 million of its 8-year senior unsecured notes.
Playtika intends to use the borrowings under the new B-term loan, together with the net proceeds from the offering of the notes, to fully repay its existing $ 2.375 billion B-term loan, to pay off the costs and expenses related to refinancing operations and for overhead costs for business purposes, including working capital, operating expenses, capital expenditures and potential loan repayments.
“We are delighted to take advantage of our healthy financial position and to leverage our recent successful IPO to refinance our B term loan,” said Craig Abrahams, president and chief financial officer of Playtika. “The refinancing should generate significant savings. We expect these transactions will reduce our annual cash interest by more than $ 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 increased revolving credit facility, Playtika has approximately $ 1.5 billion of cash on hand to continue its 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 prime rate plus 1.75%, subject to a reduction of 0.25% based on the rate of Playtika credit ratings. The revolving credit facility bears interest, at Playtika’s option, at a rate equal to LIBOR plus 3.00% or a prime rate plus 2.00%, subject to three reductions of 0.25% based on Playtika’s first net leverage ratio. The senior unsecured notes bear interest at a fixed rate of 4.25%.
The Notes and related collateral have not been and will not be registered under the US Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any other jurisdiction. The Notes and related collateral have only been sold to persons reasonably considered to be “Qualified Institutional Purchasers” under Rule 144A of the Securities Act and to certain non-US persons in connection with offshore transactions under the regulations. S of the Securities Act. Unless registered, Notes and related collateral may only be sold in transactions exempt from registration under applicable securities and state securities laws.
This press release does not constitute an offer to sell or the solicitation of an offer to buy such securities, and there will be no sale of such securities in any state or jurisdiction where such an offer, solicitation or sale would be illegal.
Playtika Holding Corp. is a leading mobile games company and monetization platform with over 34 million monthly active users in a portfolio of game titles. Founded in 2010, Playtika was among the first to bring free social games to social media and, soon after, to mobile platforms. Based in Herzliya, Israel, and guided by the mission to entertain the world through endless ways to play, Playtika has more than 3,700 employees in 19 offices around the world including Tel Aviv, London, Berlin, Vienna, Helsinki, Montreal, Chicago, Las Vegas, Santa Monica, Newport Beach, Sydney, Kiev, Bucharest, Minsk, Dnieper and Vinnytsia.
This press release includes “forward-looking statements” within the meaning of US federal securities laws. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the control of Playtika. Actual results may differ from those presented in this press release due to the risks and uncertainties inherent in Playtika’s business, including, but not limited to: the effect on anticipated interest savings of the increase in l ‘variable rate indebtedness, as well as the risk factors set out in the section titled “Risk Factors” in Playtika’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed with the Securities and Exchange Commission the United States. The forward-looking statements contained in this press release are not guarantees of future events, and actual events may differ materially from those contained or suggested by such statements. Forward-looking statements can generally be identified by the use of forward-looking terms such as “may”, “plan”, “seek”, “be comfortable with”, “will”, “expect”, “have”. intention “,” estimate, “” anticipate “,” believe “or” continue “. All forward-looking statements contained in this press release are made only as of the date of this press release, and Playtika assumes no obligation to update or revise any forward-looking statements to reflect changes in assumptions, occurrence of unforeseen events or otherwise.