International Game Technology (NYSE:IGT) is taking added steps to fast(a) its equilibrize sheet, today telling investors it testament repurchase upward to $500 billion worth of its prominent collective debt.

The one-armed bandit simple machine manufacturer said the buyback project testament pertain to $1.1 1000000000000 of 6.5% senior unsecured notes coming due inwards 2025 and $499 trillion of 3.25% senior unsecured euro notes maturing inwards 2024. IGT’s supply ship offer for the bonds expires at 11:59 P.M. (New York City time) on Sept. 30.

Holders who validly stamp their Dollar Notes or their Euro Notes after the Early Tender Time but at or prior to the Expiration Time will live eligible to get only when the Dollar Tender Offer Consideration (which is an amount equalize to the difference betwixt the Total Dollar Consideration and the Early Dollar Tender Premium) or the Euro Tender Offer Consideration (which is an amount touch to the difference between the Total Euro Consideration and the Early Euro Tender Premium), respectively,” according to a statement issued past the company.

IGT is offering bondholders a insurance premium of $30 per $1,000 of debt tendered as long as the investors ship's boat the bonds prior to 5 P.M. Eastern banner clip on Sept. 16.

Potential Cost Savings for IGT

By removing perhaps as practically as $500 million of debt outstanding, IGT could realise substantial nest egg on stake expense.

That’s a antecedency for the society and it’s taken various steps to reach that objective. For example, inward July, the UK-based gaming engineering keep company amended a course credit facility, gaining memory access to to a greater extent majuscule and pushing come out the maturity date particular date inwards the process.

The moves are relevant because IGT reduces its yearbook interestingness expense, which meshes with its ongoing efforts to pare debt and unshakable its equilibrize sheet.

IGT’s debt reducing and counterbalance sheet-firming efforts are relevant for another reason. As the company’s liabilities decline, it positions itself for a break deferred payment rating. Currently, IGT carries a junk grade, but if its balance sheet of paper improves, it becomes a candidate for an investment-grade rating. Companies with those marks earn the welfare of lower financing costs.

IGT Bond Buyback Particulars

As is par for the class with such transactions, at that place are details IGT creditors should live aware regarding the aforementioned transaction.

“Subject to applicable law and the terms and conditions of the Offer to Purchase, IGT may vary the Acceptance Priority Levels and step-up or minify either or both of the Maximum Acceptance Amount and the Dollar Offer Sub Cap without extending the Early Tender Time or the Expiration Time or otherwise providing backdown rights. IGT may also terminate the Tender Offer, waive any or all of the conditions of the Tender Offer prior to the Expiration Time, stretch the Expiration Time or amend the terms of the Tender Offer,” according to the statement.

Shares of IGT missed 6.95% this calendar week and are away almost 39% year-to-date.