IGT has announced that it has entered into an Amendment and Extension agreement with respect to its term loan facility.
The agreement, which extends the maturity date of the loan payments to January 25, 2027, has increased IGT’s debt to €1bn ($1.18bn) from the original €860m ($1.01bn).
As part of the agreement, the firm is committed to paying €200m ($235.72m) per year in amortisation payments to its creditors between 2024-2026. The remaining €400m ($471.43m) is due to be paid at the end of the maturity period in 2027.
CFO, Max Chiara, said in a statement he expects IGT’s annual interest payments to decline by $65m because of the agreement.
“We are pleased to announce a successful refinancing of our term loan facility agreement,” he said.
“This transaction is another step of a plan to enhance our credit profile, generate additional liquidity and extend debt maturities. It will extend the weighted average maturity of our debt instruments to approximately five years.
“Based on the current balances and interest rates of the Company’s debt, we expect this transaction and the debt transactions closed earlier this year to result in approximately $65 million in lower annualized interest expense going forward. We also added an environmental, social and governance (ESG) margin adjustment, highlighting IGT’s commitment to sustainability.”