International Game ups exchange fee, again extends exchange offer for zero-coupon convertibles

By Angela McDaniels

Seattle, March 15 - International Game Technology said it extended the exchange offer for its $969.712 million principal amount at maturity of zero-coupon convertible debentures due 2033 to 5 p.m. ET on March 29 from March 14 and increased the fee exchanging noteholders will receive to $2.51 from $1.56 per convertible.

International Game had previously extended the deadline from March 9.

As of March 14, $691.873 million principal amount, or 71.3%, of the convertibles had been exchanged, according to a company news release.

Under the offer, holders who exchange will receive new convertibles with the same terms but with net share settlement, which will allow International Game to pay cash for the accreted principal amount on conversion and stock for the remaining value.

International Game will account for the new convertibles under the treasury stock equivalent method for calculating diluted earnings per share. It currently uses the if-converted method, which requires all of the shares underlying the debentures to be included in the diluted share count.

The information agent is D. F. King & Co., Inc. (banks and brokers call collect 212 269-5550; others call 800 714-3312).

International Game is based in Reno, Nev., where it designs, develops, manufactures, distributes and sells computerized gaming machines and systems products.

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