International Game Technology PLC (IGT) has announced improvements to its revolving credit facility and term loan facility arrangement to help the company overcome some of the problems raised by the current coronavirus crisis.
There are many instances in which the changes change the agreements. First, it will waive the obligation to maintain a maximum ratio of total net debt to EBITDA and a minimum ratio of EBITDA to net interest costs from the quarter ending June 30th, 2020 to the quarter ending June 30th, 2021.
Furthermore, during that time IGT would be required to maintain a minimum liquidity of $500 m. The amendments also increase the maximum ratio of total net debt to EBITDA that the company will need to maintain for the fiscal quarters subsequently.
Dividends and repurchases of shares will be prohibited until 30 June 2021 and will only be permitted later if the ratio of total net debt to EBITDA is below defined thresholds.
Max Chiara, CFO of IGT said: “We are pleased to announce the amendments to our revolving credit facilities agreement and term loan facility agreement.
“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.”