Credit deal rejig helps IGT save US$65mln yearly: CFO

Jul 27, 2021 Newsdesk Latest News, Top of the deck, World  

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Gaming content and lottery provider International Game Technology Plc (IGT) has renegotiated a senior credit facility, increasing the aggregate amount by 16 percent, to EUR1 billion (US$1.18 billion), from EUR860 million. The amendment of the facility also extends the maturity date to January 25, 2027, and reduces the applicable interest rate by 35 basis points, the group said in a Monday filing in the United States.

The deal would “extend the weighted average maturity of our debt instruments to approximately five years,” said Max Chiara, chief financial officer (CFO) of IGT, as cited in an accompanying press release.

“Based on the current balances and interest rates of the company’s debt, we expect this transaction and the debt transactions closed earlier this year to result in approximately US$65 million in lower annualised interest expense,” he added.

The facility – renegotiated from a deal originally struck in July 2017, and subsequently amended several times previously – requires EUR200 million in annual amortisation payments in 2024, 2025 and 2026 respectively, with the remaining EUR400 million balance due at maturity.

The company’s net debt position stood at just under US$7.07 billion as at the end of the first quarter, down from US$7.17 billion as of March 31, 2020.

In May, IGT reported first-quarter revenue of nearly US$1.02 billion, up 24.7 percent from the prior-year quarter.

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