GTECH secures $2.6bn financing as shareholders approve IGT deal

Interactive gaming software and services provider GTECH has entered into a $2.6 billion (€2.1 billion) five-year senior facilities agreement with a syndicate of 20 banks shortly after it received approval from shareholders for its acquisition of gaming products designer and manufacturer International Game Technology (IGT).

The financing deal will include a $1.4 billion multicurrency revolving credit facility for the firm’s GTECH Corporation subsidiary and an €850 million multicurrency revolving credit facility for GTECH itself.

Upon completion of the previously agreed acquisition of IGT, the US dollar facility will be increased to $1.5 billion.

Financing will be split between banks located around the world, with the geographic distribution of the commitments from banks comprising 46% in Europe other than Italy, 21% in Italy, 21% from North America and 12% from the UK.

The revolving credit facilities will be used for general corporate purposes such as the repayment of any outstanding amounts under the terms and multicurrency revolving credit facilities for GTECH Sand GTECH Corporation, as well as refinancing certain debt securities issued by GTECH.

Upon completion of the IGT acquisition, the US dollar facility will also be used to repay any outstanding amounts under IGT’s revolving credit facility.

The financing deal comes shortly after GTECH received approval from its shareholders for its proposed acquisition of IGT.

First announced in July, GTECH has agreed a deal worth $4.7 billion in cash and stock to acquire the firm.

Upon completion, NewCo will become the new parent holding company for the combined operations of GTECH and IGT, with its ordinary shares listed on the New York Stock Exchange.

Subject to fulfilment of the conditions precedent provided for in the cross-border merger terms, GTECH will be absorbed into NewCo and GTECH shareholders will receive one NewCo ordinary share for each GTECH share.

Shareholders that did not vote in favour of the deal will be entitled to exercise their statutory right of withdrawal within 15 days after the registration of the resolution with the Companies’ Register of Rome.

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