IGT details $1.5bn term loan agreement

International Game Technology (IGT) has entered into a €1.5bn ($1.76bn) term loan agreement and announced an amendment to its multicurrency revolving credit facilities. The company said that the new loan, which matures in 2023, will be used to help repay €800m term loans that will mature in January 2019 and €500m 6.625% note due in February next year. The latest loan will be repayable in full at maturity and bear a variable interest rate based on certain credit ratings. IGT also said that it has voluntarily reduced the aggregate commitments of its multicurrency revolving credit facilities by approximately 30% to around €2bn. The firm said that this will enable it to more closely match lower anticipated liquidity needs and create greater flexibility under certain financial and non-financial covenants. The US dollar credit facility commitment now stands at $1.2bn, with the Euro at €725m. Alberto Fornaro, chief financial officer at IGT, said: “We are proactively managing our capital structure to drive significant savings in interest expense, extend maturities, and maximise financial flexibility in executing our business plan. “We expect to deliver an estimated $60m in annualised 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 €500m 6.625% notes due in February 2018 at maturity.” Related article: IGT finalises $825m sale of DoubleDown Interactive