IGT restructures credit facilities to counter COVID-19 headwinds

New York-listed International Game Technology Plc (IGT) has moved to amend its revolving credit facilities agreement and further terms on its loan facility arrangement, helping the firm navigate ongoing COVID-19 headwinds.

The amendments modify the agreements in a number of ways. Firstly, the requirement to maintain a maximum ratio of total net debt to EBITDA and a minimum ratio of EBITDA to net interest costs from the quarter ending June 30, 2020, to the quarter ending June 30, 2021, will be waived.

Secondly, IGT will be obligated to maintain minimum liquidity of $500m during that period. The modifications also increase the maximum ratio of total net debt to EBITDA that the company will be required to maintain for the fiscal quarters thereafter.

Dividends and share repurchases will be prohibited until June 30, 2021 and only permitted thereafter if the ratio of total net debt to EBITDA is below specified thresholds.

“We are pleased to announce the amendments to our revolving credit facilities agreement and term loan facility agreement,” said Max Chiara, CFO of IGT.

“The amendments provide us flexibility to navigate the near-term uncertainty caused by the COVID-19 pandemic and demonstrate the strong support we are receiving from our banking group.”

 

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