Allens advises Aristocrat on A$1.37bn US acquisition

Allens has advised Aristocrat Leisure Limited (Aristocrat) on its A$1.37bn acquisition of Tennessee based Video Gaming Technologies, Inc. (VGT).

Aristocrat will fund the acquisition and refinance its existing debt facilities through new, fully committed debt facilities and an underwritten, institutional placement of A$375million. The new debt facilities will be comprised of a US$1,300 million 7 year Term Loan (Term Loan B) and A$100 million 5 year Revolving facility.

VGT is a leading provider of predominately Class II gaming machines for the leased tribal gaming market in North America with an installed base of approximately 20,200 leased machines as at 31 December 2013. VGT has the largest Class II platform of installed gaming machines in North America.

'We have been delighted to work with Aristocrat on its transformational deal and support it in its North American growth strategy,' said lead Partner Vijay Cugati.

Banking & Finance Partner Renee Boundy, who advised Aristocrat on aspects of the debt financing, added: 'This is another example of Australian companies taking advantage of funding sourced from US term loan B providers. Term loan B providers are becoming an increasingly attractive alternative to traditional funding sources, often offering highly competitive pricing, longer tenor and greater flexibility of financial and other covenants.'

Announced on Monday 7 July, the transaction is subject to regulatory and other approvals and customary closing conditions.

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