IGT Announces New Term Loan And Revolving Credit Facilities
IGT has announced that it has entered into a €1,500 million term loan agreement which matures in 2023 and an amendment to its multicurrency revolving credit facilities which mature in July 2021.
“We are proactively managing our capital structure to drive significant savings in interest expense, extend maturities, and maximize financial flexibility in executing our business plan,” said Alberto Fornaro, CFO of IGT. “We expect to deliver an estimated $60 million in annualized interest cost savings from the combination of today’s announced transactions, the recently completed tender for the 7.500% notes due in June 2019 and repayment of borrowings with proceeds from the recent sale of Double Down Interactive LLC, as well as the repayment of the €500 million 6.625% notes due in February 2018 at maturity.”
Proceeds from the new €1,500 million term loan will be used to repay the €800 million term loans maturing in January 2019 and the €500 million 6.625% notes due in February 2018. The term loan will be repayable in full at maturity and will bear a variable interest rate based on certain credit ratings. The agreement provides for standard covenants and restrictions which are substantially identical to those found in the amended multicurrency revolving credit facilities.
IGT also voluntarily reduced the aggregate commitments of the multicurrency revolving credit facilities by about 30% to approximately $2,000 millionto more closely match lower anticipated liquidity needs and created more flexibility under certain financial and non-financial covenants. The commitments under the US dollar and euro revolving credit facilities are now $1,200 million and €725 million, respectively.
Bank of America Merrill Lynch International Limited and Mediobanca – Banca di Credito Finanziario S.p.A. acted as Global Coordinators, Bookrunners and Mandated Lead Arrangers; BNP Paribas, Banca IMI S.p.A. and UniCredit Bank AG acted as Bookrunners and Mandated Lead Arrangers; and Barclays Bank PLC, Crédit Agricole CIB, Milan Branch, ING Bank N.V. – Milan Branch, National Westminster Bank PLC, Société Générale, The Bank of Nova Scotia and Credit Suisse AG, Milan Branch acted as Mandated Lead Arrangers with respect to the term loan facility.
