Business Context and Reporting Period
This Form 6-K filing by International Game Technology PLC (IGT) covers the month of June 2019, specifically dated June 11, 2019. The filing reports on a significant capital market transaction involving the issuance of new senior secured notes and the planned redemption of existing debt.
Key Financial Metrics and Capital Structure
- New Debt Issuance: IGT successfully upsized and priced €750,000,000 in 3.500% senior secured notes due 2026.
- Debt Redemption: The company intends to redeem €437,605,000 of its 4.125% senior secured notes due 2020 in full.
- Use of Proceeds: Net proceeds will fund the redemption of the 2020 notes and partially repay utilizations under senior revolving credit facilities.
- Liquidity Condition: The redemption of the 2020 notes is conditioned on IGT receiving at least €600,000,000 in gross proceeds from the new note sale.
Note: This filing does not provide revenue, profit, cash flow, or margin data.
Material Changes and Transaction Details
The primary material change is the restructuring of IGT's debt profile. The company is replacing higher-interest, shorter-term debt (4.125% due 2020) with lower-interest, longer-term debt (3.500% due 2026). Settlement of the new notes is expected on June 20, 2019, with the redemption of the old notes scheduled for June 22, 2019.
Outlook, Risks, and Management Commentary
Management has indicated that the new notes have been applied for listing on the Official List of Euronext Dublin and admission to trading on the Global Exchange Market. The transaction is subject to customary market and closing conditions. No specific risks or contingencies beyond the standard settlement conditions and the gross proceeds threshold for redemption were detailed in this specific filing text.
Key Facts for Investor Verification
- Verify the final settlement date of the €750 million notes (expected June 20, 2019).
- Confirm the successful receipt of at least €600 million in gross proceeds to ensure the redemption of the 2020 notes proceeds as planned.
- Monitor the impact of the new debt issuance on the company's overall leverage ratios and interest coverage.
- Check for any changes in the senior revolving credit facility utilization following the partial repayment.