International Game Technology (IGT) has announced a tender offer for its outstanding €700,000,000 4.125% senior secured notes due 2020 and €500,000,000 4.750% senior secured notes due 2020. In a statement, the firm confirmed: “IGT hereby also announces that it intends to launch a new offering of euro notes.The purpose of the offer and the new notes offering is to extend the weighted average maturity of IGT’s debt.”
Subject to the terms and conditions set out in the offer to purchase, IGT intends to buy an aggregate principal amount of notes (if any) validly tendered for an aggregate tender offer consideration with respect to such notes across both series up to an amount equal to the gross proceeds from the new notes offering.
However, IGT reserves the right, in its sole discretion, to accept an aggregate principal amount of notes (if any) validly tendered for an aggregate tender offer consideration that is significantly more or significantly less than the new notes proceeds. In the event that any accrued interest, costs, fees or expenses are subsequently designated by IGT to be paid with the new notes proceeds, this would reduce by such amount the tender offer consideration available to be paid and consequently the aggregate principal amount of notes accepted for purchase.
The funding of the new notes offering is a condition to the offer (though such condition may be waived in whole or in part by IGT).
Outlining the details of the tender offer consideration, IGT stated: “The tender offer consideration for each €1,000 principal amount of the 4.125% notes will be €1,050. The tender offer consideration for each €1,000 principal amount of the 4.750% Notes will be €1,070. In addition to the respective tender offer consideration, all holders of purchased notes will also receive a cash amount equal to accrued and unpaid interest on the applicable notes.”