IGT upsizes note offering to $750m

18 September 2018

International Game Technology (IGT) was able to upscale a planned $500m (£380m/€429m) offer of senior secure notes by $250m yesterday (Monday) after demand exceeded supply at an attractive price for the company.

IGT announced yesterday (Monday) that an application had been submitted for the notes, which are due in 2027, to be listed on the Euronext Dublin market.

Credit ratings agency Moody’s Investors Service, which reflected on the initial $500m offering, said that the transaction would “improve the company’s financial flexibility”, with the proceeds used to redeem IGT’s $600m worth of 5.625% senior secured notes that were due in 2020.

“The transaction extends IGT's maturity profile… providing funds to facilitate the refinancing of a significant part of its remaining 2020 maturities, while maintaining a good liquidity profile,” Moody’s said in a note for investors.

However, as it transpired, the offering was upsized to $750m worth of senior secured notes at 6.25%.

“Investor demand for the new issue was extremely strong at a very attractive price for us,” an IGT spokesperson told iGamingBusiness.com today.

“Owing to the volume of demand and the price, we were able to take out some of our residual debt.”

Settlement of the notes, which is subject to customary market and closing conditions, is expected on September 26.

IGT expanded its internet gaming offering in the US last week by launching what it claims is the country’s first cross-platform online Wide Area Progressive (WAP) product.

IGT MegaJackpots will be available to players in the regulated state of New Jersey on four sites: CaesarsCasino.com, HardRockCasino.com, MoheganSunCasino.com and ResortsCasino.com.

IGT’s sports betting business in the US has expanded rapidly over the past few months following the Supreme Court ruling on PASPA in May.

In recent weeks, IGT has confirmed its entrance into the tribal sports betting market by announcing a deal with the Mississippi Band of Choctaw Indians and secured sports betting partnerships with both FanDuel and MGM in New Jersey, whilst forging a joint agreement with William Hill and the Rhode Island Lottery. In addition, the company has obtained a sports betting licence in West Virginia.