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International Game holders convert all zero-coupon debentures due 2033 ahead of redemption
By Jennifer Chiou
New York, Jan. 31 - Holders of all of International Game Technology's $499.7 million accreted value of zero-coupon convertible debentures due Jan. 29, 2033 converted their securities ahead of the Jan. 10 redemption, according to an 8-K filing with the Securities and Exchange Commission.
As a result, the company issued 1.6 million shares between Dec. 13 and Jan. 31 and another 5.7 million shares on Jan. 31 and made additional cash payments. The company previously said that based on the Dec. 19 closing stock price of $45.68, it would have paid $499.1 million in cash.
According to the filing, holders of $963.3 million face value of debentures converted their securities.
Since Dec. 13, the company said that $112.7 million accreted value of debentures have been surrendered for conversion. As a result, the company previously said it would issue 1.3 million shares and pay $112.7 million.
On Oct. 2, the company announced that the market price condition was met for convertibility of the debentures. As a result, debentures will be convertible into 21.1704 shares per $1,000 principal amount.
Debentures issued in the recent exchange offer dated April 4, 2006 will receive a combination of cash and shares.
As already reported, the company also completed a private placement of $900 million of 2.6% convertible debentures due 2036, which includes a $75 million greenshoe. It will apply partial proceeds to the redemption.
Also linked to the redemption, the company said it completed its previously announced repurchase of $225.4 million of its shares.
International Game is a computerized gaming company based in Reno, Nev.
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