New York-listed industry lottery and gambling systems provider IGT Group Plc (IGT) has this afternoon announced that it has secured a new $1.5 billion loan agreement which is set to mature from 2023.
Updating the market and stakeholders, IGT governance informs that it will use the proceeds from the $1.5 billion loan to repay the ‘€800 million term loans maturing in January 2019 and the €500 million 6.625% notes due in February 2018’.
Moving forward IGT will voluntarily reduce its aggregate commitments of the multicurrency revolving credit facilities by about 30% to approximately $2 billion in order to more closely match lower anticipated liquidity needs and created more flexibility under certain financial and non-financial covenants.
“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,” commented Alberto Fornaro, CFO of IGT Group on the corporate update
“We expect to deliver an estimated $60 million in annualized 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 €500 million 6.625% notes due in February 2018 at maturity.”