By Andrea Heisinger
New York, June 10 - International Game Technology priced $500 million of 7.5% 10-year senior notes Wednesday at Treasuries plus 362.5 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes were sold at the tightest end of guidance, which was in the 375 bps area over Treasuries, a source close to the deal said. There was a margin of plus or minus 12.5 bps.
The notes (Baa2/BBB/) priced at 99.453 to yield 7.579% with a make-whole call at Treasuries plus 50 bps.
The notes feature a change-of-control put of 101%.
Bookrunners were Banc of America Securities LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., Mitsubishi UFJ Securities, Mizuho Securities USA Inc., Morgan Stanley & Co. Inc., RBS Securities Inc. and Wachovia Capital Markets LLC.
Proceeds will be used to fund the repurchase or redemption of a portion of the company's 2.6% senior convertible notes due 2036.
The electronic gaming equipment and network systems company is based in Reno, Nev.
| Issuer: | International Game Technology
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | June 15, 2019
|
| Bookrunners: | Banc of America Securities LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., Mitsubishi UFJ Securities, Mizuho Securities USA Inc., Morgan Stanley & Co. Inc., RBS Securities Inc., Wachovia Capital Markets LLC
|
| Coupon: | 7.5%
|
| Price: | 99.453
|
| Yield: | 7.579%
|
| Spread: | Treasuries plus 362.5 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Change-of-control put: | 101%
|
| Trade date: | June 10
|
| Settlement date: | June 15
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Price talk: | 375 bps area, plus or minus 12.5 bps
|
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