Casino equipment maker International Game Technology (IGT) has extended for two days the deadline for holders of its 2020 principal notes – worth US$300 million – to consent to certain changes of conditions following the firm’s plan to merge with Italy-based lottery specialist GTech SpA. The new deadline expires on Wednesday, 5pm, New York time.
The company has also doubled the cash fee it proposes to pay to holders of these notes. IGT will pay a consent fee equal to US$10.00 in cash per US$1,000 principal amount of 2020 notes if the proposed amendment becomes effective, it said in a statement on Tuesday.
On October 8, IGT announced it was offering holders of its principal notes – amounting in aggregate to US$1.3 billion – cash fees if they consented to changes of conditions following the GTech deal.
The changes are: allowing the merger of two firms to be excluded from the definition of ‘change of control’; and after the merger, applying the definition of ‘change of control’ to the post merger parent of IGT, and permitting the post merger holding company to provide the financial reports currently provided by IGT.
GTech is acquiring IGT for US$6.4 billion, comprised of US$4.7 billion in cash and stock, and the assumption of US$1.7 billion in net debt. The deal is due to be completed in the first half of 2015.
On Tuesday, the U.S.-based gaming manufacturer said it had “received the requisite consents from holders of a majority in outstanding principal amount of the 2019 notes,” amounting to US$500 million. It said the consent fee of US$2.50 per US$1,000 principal amount of the notes would be paid on Thursday.
The company also said it did not receive the requisite consents from holders of a majority of the 2023 notes – amounting to US$500 million – prior to the expiration date on Monday. IGT however is not extending the expiration date for the 2023 notes, it said.
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"I am not going to speculate on what the [casino licence refreshment] tender requirements would be. I have full confidence and faith in the Macau government to treat everyone fairly"
Wilfred Wong Ying Wai
President and chief operating officer of Macau-based casino operator Sands China