IGT Amends Revolving Credit Facilities and Term Loan Facility Agreements

International Game Technology (IGT) PLC, the UK-based multinational gambling company, has declared amendments to its revolving credit facilities agreement and term loan facility agreement in view of the Covid-19 outbreak and its economic impact.

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

The new changes would mainly mean four things:

1. Removing the legal obligations requiring IGT to keep a maximum ratio of total net debt to EBITDA and a minimum ratio of EBITDA to net interest costs from the fiscal quarter ending June 30, 2020 through the fiscal quarter ending June 30, 2021,
2. Ensuring IGT would maintain minimum liquidity of $500 million during such fiscal quarters
3. Raising the maximum ratio of total net debt to EBITDA that IGT needs to keep for the fiscal quarters thereafter
4. Banning dividends and share repurchases through June 30, 2021 and permitting dividends and share repurchases thereafter if the ratio of total net debt to EBITDA is below specified thresholds.

The following changes also come into force for the period from January 20, 2020 to August 31, 2021:

• Material adverse effects arising from the COVID-19 pandemic are excluded from the definition of “material adverse effect”
• Cessations and suspensions of business arising from the COVID-19 pandemic will not constitute an event of default
• IGT’s obligation to grant security over additional collateral is waived unless its public debt ratings are lower than BB- or Ba3.

The changes also ensure that all provide that till August 31, 2020, the maximum annual permitted acquisition amount is reduced  to $100 million.