Playtika Announces Closing of Debt Refinancing Resulting in Over $80 Million Annual Cash Interest Savings
March 11 2021 - 3:39PM
Playtika Holding Corp. (NASDAQ:PLTK) (“Playtika”) today
announced it has entered into a 7-year $1.9 billion Term Loan B,
increased its Revolving Credit Facility to $600 million with a new
5-year maturity and consummated its previously announced offering
of $600 million aggregate principal amount of its 8-year senior
unsecured notes.
Playtika intends to use borrowings under the new Term Loan B,
together with the net proceeds from the offering of the notes, to
repay in full its existing $2.375 billion Term Loan B, to pay fees
and expenses in connection with the refinancing transactions and
for general corporate purposes, including working capital,
operating expenses, capital expenditures, and the potential
repayment of borrowings.
“We are pleased to take advantage of our healthy financial
position and also leverage our recent successful IPO to refinance
our Term Loan B,” said Craig Abrahams, Playtika’s President and
Chief Financial Officer. “The refinancing is expected to generate
significant savings. We anticipate that these transactions will
reduce our annual cash interest by over $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 upsized
revolving credit facility, Playtika has approximately $1.5 billion
in available liquidity at its disposal to further pursue 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 base rate plus 1.75%, subject to one 0.25% step-down
based on Playtika’s credit ratings. The Revolving
Credit Facility bears interest, at Playtika’s option, at a rate
equal to LIBOR plus 3.00% or at a base rate plus 2.00%, subject to
three 0.25% step-downs based on Playtika’s first lien net leverage
ratio. The senior unsecured notes bear interest at a
fixed rate of 4.25%.
The notes and the related guarantees have not been and will not
be registered under the U.S. Securities Act of 1933, as amended
(the “Securities Act”), or the securities laws of any other
jurisdiction. The notes and the related guarantees were sold only
to persons reasonably believed to be “qualified institutional
buyers” in accordance with Rule 144A under the Securities Act and
to certain non-U.S. persons in offshore transactions in reliance on
Regulation S under the Securities Act. Unless they are
registered, the notes and the related guarantees may be sold only
in transactions that are exempt from registration under the
Securities Act and applicable state securities laws.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there
be any sale of these securities in any state or jurisdiction in
which such offer, solicitation or sale would be unlawful.
About Playtika
Playtika Holding Corp. is a leading mobile gaming company and
monetization platform with over 34 million monthly active users
across a portfolio of games titles. Founded in 2010, Playtika was
among the first to offer free-to-play social games on social
networks and, shortly after, on mobile platforms. Headquartered in
Herzliya, Israel, and guided by a mission to entertain the world
through infinite ways to play, Playtika has over 3,700 employees in
19 offices worldwide including Tel-Aviv, London, Berlin, Vienna,
Helsinki, Montreal, Chicago, Las Vegas, Santa Monica, Newport
Beach, Sydney, Kiev, Bucharest, Minsk, Dnepr, and Vinnytsia.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the U.S. federal securities laws. Forward-looking
statements are subject to known and unknown risks and
uncertainties, many of which may be beyond Playtika’s control.
Actual results may differ from those set forth in this press
release due to the risks and uncertainties inherent in Playtika’s
business, including, without limitation: the effect on anticipated
interest savings of increases in variable rate indebtedness, as
well as the risk factors set forth in the section entitled “Risk
Factors” in Playtika’s Annual Report on Form 10-K for the year
ended December 31, 2020 filed with the U.S. Securities and Exchange
Commission. The forward-looking statements in this press release
are not a guarantee of future events, and actual events may differ
materially from those made in or suggested by such statements.
Forward-looking statements generally can be identified by the use
of forward-looking terminology such as “may,” “plan,” “seek,”
“comfortable with,” “will,” “expect,” “intend,” “estimate,”
“anticipate,” “believe” or “continue.” Any forward-looking
statements in this press release are made only as of the date of
this press release, and Playtika does not undertake any obligation
to update or revise any forward-looking statements to reflect
changes in assumptions, the occurrence of unanticipated events or
otherwise.
Contact
Investor ContactPlaytikaDavid
Niederman davidni@playtika.com
Press ContactThe OutCast AgencyAngela
Allisonplaytika@theoutcastagency.com
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