GGRAsia – IGT amends revolving credit facilities, term loan

IGT amends revolving credit facilities, term loan

Jul 28, 2022 Newsdesk Industry Talk, Latest News

Gaming and lottery provider International Game Technology Plc (IGT) announced on Wednesday an amendment and extension to its revolving credit facilities agreement and an amendment to its term loan facility agreement.

A press release quoted Max Chiara, IGT’s chief financial officer, saying: “These transactions represent a continuation of the many capital structure initiatives executed over the last few years to bolster our credit profile.”

He added: “The revolving credit facilities amendment extends the final maturity date of the revolving credit facilities by three years to 2027, reduces the interest rate margins and provides greater flexibility under certain non-financial covenants.”

The firm said the amendment to its revolving credit facilities increased the aggregate commitments of the lenders to approximately US$1.83 billion, from about US$1.68 billion previously. It also “extends the final maturity date to July 31, 2027,” and “reduces the facilities margins by at least 0.25 percent,” it added.

IGT said the amendments increase the firm’s annual permitted acquisition limit from 10 percent to 15 percent of consolidated total assets and the lifetime permitted acquisition limit from US$2.25 billion to US$2.5 billion.

The amendments also allow for the increase in the annual limit on IGT’s dividends and share repurchases from US$300 million to US$400 million, based on the group’s current public debt ratings. Such limit goes up to US$550 million “if any two public debt ratings are equal to BB+/Ba1”, and is eliminated “if any two public debt ratings are higher than BB+/Ba1,” said the gaming supplier.

IGT posted a net profit of US$79 million for the first quarter this year, on revenue that rose 3.5 percent year-on-year, to just above US$1.05 billion.

Earlier this month, the company completed the acquisition of online gaming supplier iSoftBet for approximately EUR160 million (US$163.0 million, at current exchange rates) in cash.