GGRAsia – IGT unit to offer US$550mln senior notes due in 2030

IGT unit to offer US$550mln senior notes due in 2030

Sep 11, 2024 Newsdesk Industry Talk, Latest News, World

Gaming equipment maker and content provider International Game Technology Plc (IGT) on Tuesday announced an offering of senior secured notes denominated in euros and due in 2030. The exercise will be via IGT Lottery Holdings BV, a wholly-owned subsidiary of IGT, according to a press release.

The gaming supplier said the proceeds from the offering as proposed – and to be guaranteed by IGT – will be used to redeem IGT’s 6.5-percent senior secured notes due in 2025, pay related fees and expenses, and to cover general corporate purposes.

Moody’s Ratings on Tuesday said the proposed IGT offering consisted of EUR500 million (US$551.1 million) in senior secured notes. The institution assigned a “Ba1” rating with stable outlook to the proposed offering of notes.

“The proposed refinancing is largely leverage neutral, and pushes out a portion of the company’s upcoming maturities,” stated the rating agency.

IGT reported net income attributable to shareholders of US$42 million for the three months to June 30, on revenue of US$1.05 billion for the period. The firm declared a quarterly cash dividend of US$0.20 per common share, which was paid in late August.

The group runs three main segments: global lottery; global gaming; and PlayDigital, its online content arm.

IGT is to sell its gaming and PlayDigital segments to funds managed by affiliates of private equity firm Apollo Global Management Inc, for US$4.05 billion.

The funds linked to Apollo will simultaneously acquire gaming technology supplier Everi Holdings Inc, paying US$14.25 per share in cash. The transactions are likely to be completed by the end of the third quarter of 2025, according to the parties.

Upon completion of the sale of IGT gaming and digital businesses, the current IGT will be a “pure-play lottery company” under a new name and ticker symbol.