Drama Continues: IGT Offers Millions of Dollars in Senior Notes
The situation in the IGT headquarters has been quite tense in the past couple of months.
Near the end of August 2019, an investigation was launched against Rhode Island governor Gina Raimondo over a deal concerning the British company and leading lottery supplier for the States.
As a follow-up, two Twin River casinos in Rhode Island decided to stop the content distribution deal with the fir, even though it has been supplying the venue with 85% of its offering. On August 30th 2019, we wrote about the games which had been pulled from the establishments “due to underperformance”.
Trying to Make Additional Cash
Following the recent mishap, IGT has made up its mind and now offers $551.5 million in senior notes to institutional investors, who are those with the deepest pockets. The goal is to carry on with its innovation and new product rollout. Naturally, IGT hopes to reach that goal with this strategic yet interesting move.
In a recent press release, IGT stated that the senior notes would be listed on the Global Exchange Market of Euronext Dublin. They will become due in 2028. If the offer is approved, IGT will launch the sale on September 16th. However, the reps highlighted that the notes “have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”). Also, they cannot be sold in the US without registration under the Securities Acts or “pursuant to an applicable exemption from such registration”.
Input on IGT’s Finances
The cash is expected to repay open credit facilities, possibly in full, for “general corporate purposes”. Besides, it will be used to pay down certain debt issuance costs linked with the offering, as well as a “scheduled EUR320 million [$353.45 million] amortisation payment due under the senior-term loan facility on January 2020”.
IGT has a net debt of around €7 billion, according to the company’s latest financial report for Q2, which is 1% more than the previous year. Its net profit marked a 96.7% year-on-year decline from $161.5 million (Q2 2018) to $4.9 million (Q2 2019).
EXCLUSIVE SIGNUP BONUSES
BestCasinos team consists of online casino experts dedicated to spreading their knowledge and experience to a wider audience, all in effort to help even the most inexperienced players gain their footing in this exciting industry.