IGT new senior debt to fund cash buy of notes due 2022

Jun 09, 2020 Newsdesk Latest News, Top of the deck, World  

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Casino and lottery technology provider International Game Technology Plc (IGT) announced on Monday the pricing of US$750-million in 5.25-percent senior secured notes due in 2029, which it intends to list and trade on the Euronext Dublin market.

The group said in filings to Nasdaq, where it has its main listing, that it would use part of the proceeds of the offering to purchase for cash up to US$300-million in principal amount of its existing US$1.5-billion in 6.250-percent senior secured notes due in 2022.

IGT said that such purchase would assist the group to “repay utilisations and pay related accrued interest under IGT’s revolving credit facilities,” and would also help to “pay certain debt issuance costs … and certain fees and expenses incurred in connection with the tender offer,” as well as to “increase cash on hand”.

In May, IGT had reported its first-quarter earnings had been negatively affected by the Covid-19 pandemic, coinciding with widespread shutdowns of casinos in key markets, and dramatic reduction in tourism in markets such a Macau that had remained open for most of the global crisis.

IGT posted a net loss of nearly US$248.3 million for the first quarter, compared with a US$40.3-million profit in the corresponding period a year earlier.

As of March 31 its net debt position was US$7.17 billion, but that was an improvement from the US$7.38 billion recorded as of December 31, 2019.

IGT said on Monday that its offer to buy a portion of its US$1.5-billion senior secured notes would be capped at US$300 million, but was “subject to increase or decrease” at the company’s “sole discretion”.

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