IGT Amends Credit Facility, Extends Maturity Date

International Game Technology (NYSE:IGT) announced some added financial flexibility, saying it amended a revolving credit facility, providing access to to a greater extent chapiter and a yearner maturity date.

The drawing manipulator and slot simple machine manufacturing business also amended its full term loan facilities, gaining another lay of financial ventilation way inward the process.

Among other changes, the revolving deferred payment installation amendment increases the congeries commitments of the lenders from roughly US$1.68 1000000000 eq (US$1.05 1000000000 and €625 million) to some US$1.83 billion tantamount(p) (US$820 zillion and €1.00 billion), extends the last due date engagement to July 31, 2027 and reduces the facilities margins by at least 0.25% (0.40% at electric current debt ratings),” according to a statement issued past the company.

The moves are relevant because IGT reduces its one-year interest group expense, which meshes with its ongoing efforts to trim debt and steadfast its equilibrate sheet.

More Important IGT Details

The UK-based gaming technology society provides back-end services and solutions for lotteries and sportsbooks world-wide and manufactures slot machines.

For IGT investors, on that point are other potentiality benefits inwards the revolving credit entry readiness and term loan amendments because the added flexibleness could go down the arrange for the gaming provider to apportion to a greater extent immediate payment to acquisitions and shareholder rewards.

“The RCF and TLF amendments, among other changes, (i) increment the yearly permitted acquisition demarcation line from 10% to 15% of consolidated tally assets and the lifetime permitted acquisition demarcation from US$2.25 one thousand million to US$2.5 billion and (ii) step-up the annual confine on dividends and percentage repurchases from US$300 meg to US$400 1000000 based on the group’s stream public debt ratings and to US$550 trillion if any ii public debt ratings are equate to BB+/Ba1 and eliminates such boundary if any two public debt ratings are higher than BB+/Ba1,” the accompany said inward the statement.

Translation: The higher IGT’s credit entry rating trend, the more flexibility the companionship has to encouragement buybacks and dividends. IGT yields 4.44% and announced a massive share repurchase program last November.

Interesting IGT Tidbits

While shares of IGT are pile 37.70% year-to-date, the make isn’t unbeloved of catalysts with which to come-on investors. In add-on to the newly attained financial flexibility above, the gaming companionship is bolstering its equilibrise sheet.

Add to that its lottery business, I of the world’s largest, delivers the goods. Lottery assets are cash generators and worthy inwards the investiture community. Still, they often don’t get under one's skin replete(p) course credit when the parent company has other lines of business, as with IGT.

IGT’s new created, dedicated iGaming and sports wagering unit could eventually live a spin-off candidate as the keep company looks for other avenues to unlock shareholder value.