IGT PLC Announces Amendments To Revolving Credit Facilities And Term Loan

"We are pleased to announce the amendments to our revolving credit facilities agreement and term loan facility agreement," said Max Chiara, CFO of IGT. "The amendments provide us flexibility to navigate the near-term uncertainty caused by the COVID-19 pandemic and demonstrate the strong support we are receiving from our banking group."

The Amendments modify the Revolving Credit Facilities Agreement and the Term Loan Facility Agreement by, among other things: (i) waiving the covenants requiring IGT to maintain a maximum ratio of total net debt to EBITDA and a minimum ratio of EBITDA to net interest costs from the fiscal quarter ending June 30, 2020 through the fiscal quarter ending June 30, 2021, (ii) obligating IGT to maintain minimum liquidity of $500 million during such fiscal quarters, (iii) increasing the maximum ratio of total net debt to EBITDA that IGT is required to maintain for the fiscal quarters thereafter, and (iv) prohibiting dividends and share repurchases through June 30, 2021 and permitting dividends and share repurchases thereafter if the ratio of total net debt to EBITDA is below specified thresholds.

The Amendments provide that from January 20, 2020 through August 31, 2021, (i) material adverse effects arising from the COVID-19 pandemic are excluded from the definition of "material adverse effect", (ii) cessations and suspensions of business arising from the COVID-19 pandemic will not constitute an event of default, and (iii) IGT's obligation to grant security over additional collateral is waived unless its public debt ratings are lower than BB- or Ba3.  The Amendments all provide that until August 31, 2020, the maximum annual permitted acquisition amount is decreased to $100 million.

The foregoing description of the Amendments is qualified in its entirety by reference to the full text of the Amendments, which are each filed as exhibits to IGT's Report on Form 6-K dated May 13, 2020.

BofA Securities and Mediobanca - Banca di Credito Finanziario S.p.A. acted as IGT's Global Coordinators with respect to the Amendments.