Long-Term and Other Debt

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Long-Term and Other Debt

Long-Term and Other Debt

Outstanding Debt

The following reflects our outstanding debt as of March 31, 2014 and December 31, 2013:

	March 31, 2014			December 31, 2013
Revolver, varying interest rate, due 2018	$	—		$	—
Term Loan, varying interest rate, due 2020 (1)	2,283.5			2,288.8
2018 Notes	250.0			250.0
2019 Notes (2)	346.5			346.3
2020 Notes	300.0			300.0
China Loans, varying interest rates	7.0			7.4
Capital lease obligations, 3.9% interest as of March 31, 2014 payable monthly through 2019	14.2			0.1
Total long-term debt outstanding and capital lease obligations	3,201.2			3,192.6
Less: debt payments due within one year	(32.9		)	(30.4		)
Long-term debt, net of current installments	$	3,168.3		$	3,162.2

(1) Total of $2,294.2 million less amortization of a loan discount in the amount of $10.7 million as of March 31, 2014. Total of $2,300.0 million less amortization of a loan discount in the amount of $11.2 million as of December 31, 2013.

(2) Total of $350.0 million less amortization of a loan discount in the amount of $3.5 million and $3.7 million as of March 31, 2014 and December 31, 2013, respectively.

Senior Secured Credit Facilities

In connection with the WMS acquisition, the Company and certain of its subsidiaries entered into a credit agreement dated as of October 18, 2013, by and among SGI, as the borrower, the Company, as a guarantor, Bank of America, N.A., as administrative agent, and the lenders and other agents party thereto, providing for senior secured credit facilities in an aggregate principal amount of $2,600.0 million, including a $300.0 million revolving credit facility, which has dollar and multi-currency tranches, and a $2,300.0 million term loan facility. The term loan facility was used, in part, to finance the consideration paid in the WMS acquisition, to repay all indebtedness under our and WMS's prior credit agreements and to pay related acquisition and financing fees and expenses. Up to $200.0 million of the revolving credit facility is available for issuances of letters of credit. The term loan is scheduled to mature on October 18, 2020 and the revolving credit facility is scheduled to mature on October 18, 2018 (subject to accelerated maturity dates depending on our liquidity at the time our 2018 Notes, 2019 Notes and 2020 Notes become due).

SGI is required to pay commitment fees to revolving lenders on the actual daily unused portion of the revolving commitments at a rate of 0.50% per annum through maturity, subject to a step-down to 0.375% based upon certain first lien net leverage ratios. The credit facilities contain customary events of default (subject to customary grace periods and materiality thresholds). Upon the occurrence of certain events of default, the obligations under the credit facilities may be accelerated and the commitments may be terminated.

We were in compliance with the covenants under the credit agreement as of March 31, 2014.

Senior Subordinated Notes

For additional information regarding our 2018 Notes, 2019 Notes and 2020 Notes, see Note 15 in our 2013 Annual Report on Form 10-K.

Capital Leases

On March 31, 2014, we entered into a new leasing arrangement with ITL for the lease of gaming machines in connection with a long-term services contract with a customer. As of March 31, 2014, we recorded a capital lease asset and minimum lease liability of $14.2 million. We expect the lease value will increase during 2014 as we lease additional gaming machines that will be placed into service under our long-term customer contract.