International Game Technology PLC (IGT) announced that it has entered into an amendment and extension agreement with respect to its term loan facility.
“We are pleased to announce a successful refinancing of our term loan facility agreement,” said Max Chiara, CFO of IGT. “This transaction is another step of a plan to enhance our credit profile, generate additional liquidity and extend debt maturities. It will extend the weighted average maturity of our debt instruments to approximately five years.
“Based on the current balances and interest rates of the company’s debt, we expect this transaction and the debt transactions closed earlier this year to result in approximately $65 million in lower annualized interest expense going forward. We also added an environmental, social and governance (ESG) margin adjustment, highlighting IGT’s commitment to sustainability.”
The amendment and extension agreement, among other things: (i) increases the amount of the aggregate term loan facilities from €860 million to €1 billion; (ii) extends the maturity date of the term loan facilities to January 25, 2027; (iii) reduces the applicable interest rate by 35 basis points based on current debt ratings; (iv) provides for a maximum decrease or increase of an additional 7.5 basis points in the margin based on ESG factors; (v) requires €200 million in annual amortization payments in each of 2024, 2025 and 2026, with the remaining €400 million balance due at maturity; and, (vi) maintains and extends existing financial covenant thresholds.
