Gaming tech firm International Game Technology (IGT) is repurchasing some of its outstanding notes for a sum of €374.5 million (US$436.6 million).
On Tuesday, IGT announced that it has completed a tender offer to buy back outstanding senior secured notes due 2020 from its holders. The note tender offer was intended to extend the weighted average maturity of the company’s debt, according to IGT.
The offer includes the €700-million ($816.16 million) 4.125 percent Senior Secured Notes duein 2020 and represented by the Regulation S global note; and the €500-million ($582.9 million), 4.75 percent senior secured notes due in 2020, which were issued with an initial coupon of 3.5 percent.
Holders were offered €1,050 ($1,224) for each €1000 ($1,166) principal amount of the 4.125 percent Notes and €1,070 ($1,247) for each €1,000 principal amount of the 4.75 percent Notes.
IGT’s offer, made “subject to the conditions set out in the offer to purchase dated June 18, 2018,” is available to note holders until June 25, 2018.
Lucid Issuer Services Limited (LISL), which managed the tender offer, reported that some €374.5 million ($436.6 million) worth of notes have been tendered before the offer expired last Tuesday.
Breaking down the figures, LISL said that some €262.4 million ($305.94 million) aggregate principal amount of the 4.125 percent Notes were proffered before the deadline. The 4.750 percent Notes that were validly tendered reached an aggregate principal amount of €112.1 million ($130.7 million).
“Subject to satisfaction of all conditions set out in the Offer to Purchase, IGT intends to accept for purchase all of the Notes tendered in the Offer. The Final Acceptance Amount (as defined in the Offer to Purchase) is therefore €374,495,000,” the company said.
The dealer managers for the offer were BNP Paribas, Deutsche Bank AG, London Branch and Société Générale.
Last month, IGT announced that its net debt rose by over $200 million to $7.52 billion and booked a $103 million net loss in the first quarter of 2018. The firm attributed the growth of its net debt to unfavorable foreign exchange fluctuations.
The nine-figure loss in the first quarter overshadowed the $1.2 billion revenue that IGT posted during the first three months of 2018.