BofA Securities and Mediobanca – Banca di Credito Finanziario acted as global coordinators for amendments to International Game Technology’s revolving credit facilities and term loan facility agreement.

“We are pleased to announce the amendments to our revolving credit facilities agreement and term loan facility agreement,” Max Chiara, CFO of International Game Technology, said. “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 (i) waiving the covenants requiring International Game Technology 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 International Game Technology to maintain minimum liquidity of $500 million during such fiscal quarters, (iii) increasing the maximum ratio of total net debt to EBITDA that International Game Technology 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 Jan. 20, 2020 through Aug. 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) International Game Technology’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 Aug. 31, 2020, the maximum annual permitted acquisition amount is decreased to $100 million.