By Rebecca Melvin
New York, May 6 - International Game Technology Inc. priced an upsized $725 million of five-year convertibles after the market close Tuesday at par to yield 3.25% with an initial conversion premium of 32.5%, according to a news release.
Originally the deal was going to be $500 million in size.
The Rule 144A deal, sold via Goldman Sachs & Co., Banc of America Securities LLC, Morgan Stanley & Co. Inc. and Wachovia, priced through the tight end of talk for the coupon, which was 3.5% to 4%, and at the tight end of talk for the initial conversion premium, which was 27.5% to 32.5%.
The greenshoe was upsized to $125 million of notes from $75 million.
The notes are non-callable for life. There is a fundamental change put at 100% of principal plus interest.
Part of the proceeds will be used for hedging and warrant transactions, which raises the effective conversion premium for the issuer to 100%. Remaining proceeds will be used to pay down outstanding revolving indebtedness under its senior credit facility.
International Game is a Reno, Nev.-based maker of gaming machines and systems.
| Issuer: | International Game Technology Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $725 million, upsized from $500 million
|
| Greenshoe: | $125 million, upsized from $75 million
|
| Maturity: | 2014
|
| Bookrunners: | Goldman Sachs & Co., Banc of America Securities LLC, Morgan Stanley & Co. Inc. and Wachovia
|
| Coupon: | 3.25%
|
| Price: | Par
|
| Yield: | 3.25%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $19.97
|
| Conversion ratio: | 50.0808
|
| Price talk: | 3.5%-4%, up 27.5%-32.5%
|
| Call: | Non-callable for life
|
| Net share settlement: | Yes
|
| Pricing date: | May 5
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: IGT
|
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