GGRAsia – IGT launches tender offer for senior secured notes

IGT launches tender offer for senior secured notes

Jun 18, 2018 Newsdesk Industry Talk, Latest News

Gaming equipment manufacturer International Game Technology Plc (IGT) announced on Monday a tender offer for some of its senior secured notes due 2020.

The IGT notes covered by the offer include: the EUR700 million (US$812.8 million) 4.125 percent senior secured notes due 2020 represented by the Regulation S global note; and the EUR500 million 4.750 percent senior secured notes due 2020, which were issued with an initial coupon of 3.500 percent.

“The tender offer consideration for each EUR1,000 principal amount of the 4.125 percent notes accepted for purchase pursuant to the offer will be EUR1,050” in cash, IGT said in a release. “The tender offer consideration for each EUR1,000 principal amount of the 4.750 percent notes accepted for purchase pursuant to the offer will be EUR1,070,” it added.

The offer began on June 18 and expires on June 25.

All holders of purchased notes will also receive, in addition to the tender offer consideration, a cash amount in euro equal to the accrued and unpaid interest on the applicable notes, from, and including, the immediately preceding interest payment date up to, but excluding, the date of payment for the tendered notes, the firm said.

In its release, IGT also stated that, “to take advantage of the current market conditions it intends to launch a new offering of euro notes”.

The firm said the purpose of the announced note tender offer and of the new note offering was “to extend the weighted average maturity of IGT’s debt.”

IGT reported in May that consolidated revenue increased by 5 percent year-on-year in the first three months of 2018, while its operating income jumped 65 percent.

IGT’s net debt stood at approximately US$7.53 billion at the end of the first quarter 2018, compared to nearly US$7.32 billion as of December 31, 2017. The firm said the net debt as at March 31, 2018 included US$119 million of negative impact from foreign currency adjustments.