IGT Extends Revolving Credit Facility

IGT CFO Max Chiara (l.) recently announced that the company has closed an amendment and extension of its revolving credit facilities for three years, and an amendment to its term loan facilities.

IGT Extends Revolving Credit Facility

International Game Technology PLC (IGT) announced the closing of an amendment and extension of its revolving credit facilities (RCF) agreement and an amendment of its term loan facilities (TLF) agreement.

“These transactions represent a continuation of the many capital structure initiatives executed over the last few years to bolster our credit profile,” said Max Chiara, IGT chief financial officer. “The RCF amendment extends the final maturity date of the revolving credit facilities by three years to 2027, reduces the interest rate margins and provides greater flexibility under certain non-financial covenants.”

Among other changes, the RCF amendment increases the aggregate commitments of the lenders from approximately US$1.68 billion equivalent (US$1.05 billion and €625 million) to approximately US$1.83 billion equivalent (US$820 million and €1 billion), extends the final maturity date to July 31, 2027, reduces the facilities margins by at least 0.25 percent (0.40 percent at current debt ratings) and provides for a maximum 0.075 percent increase or decrease in such margins based on the group’s ESG rating (which is similar to the ESG margin adjustment provision of the TLF).

The RCF and TLF amendments, among other changes, increase the annual permitted acquisition limit from 10 percent to 15 percent of consolidated total assets and the lifetime permitted acquisition limit from US$2.25 billion to US$2.5 billion and increase the annual limit on dividends and share repurchases from US$300 million to US$400 million based on the group’s current public debt ratings and to US$550 million if any two public debt ratings are equal to BB+/Ba1 and eliminates such limit if any two public debt ratings are higher than BB+/Ba1.