(Bloomberg) -- Deutsche Bank AG will lead a $4.325 billion bond-and-loan offering to help finance the buyouts of two casino-equipment firms that had planned to merge before Apollo Global Management Inc. swooped in with a $6.3 billion bid.
Potential sizes for the planned high-yield bond and leveraged loan have yet to be determined, according to a person familiar with the matter who asked not to be identified as the situation is private.
Proceeds would help finance Apollo’s purchase of Everi Holdings Inc. and the gaming and digital operations of International Game Technology Plc. IGT had reached a deal in February to merge those units with Everi, and Deutsche Bank and Macquarie Capital committed to provide $3.7 billion of financing.
Macquarie, along with Deutsche Bank, also gave a financing commitment to Apollo’s pending purchases, according to a July statement announcing the agreed-to acquisitions. The banks could launch the planned high-yield bond and leverage loan any time until September 2025, by which the companies have said the takeovers are expected to be completed.
Deutsche Bank declined to comment Wednesday. Macquarie, Apollo, IGT and Everi did not respond to requests for comment.
Acquisition financing involving noninvestment-grade firms is expected to increase the next few months. Bloomberg News reported Tuesday that Bank of America Corp. will lead a $1.83 billion leveraged loan for Lone Star Funds’ purchase of Carrier Global Corp.’s commercial and residential fire unit.
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