Fitch puts IGT, Everi on positive watch

Fitch Ratings said it placed its ratings for International Game Technology plc and Everi Holdings Inc. on rating watch positive.

The RWP follows the announcement that IGT will separate its global gaming and playdigital businesses, which will Everi then be combined with Everi. The merged company will be named International Game Technology, Inc., while IGT will be renamed later.

“The rating watch reflects the creation of a pure play lottery business which will retain predictable and resilient cash flows, along with a simplified capital structure and EBITDA leverage driving down to sub-3x at closing, expected in late 2024 or early 2025,” the agency said in a press release.

The new entity will have financing commitments of $3.7 billion, plus a $500 million revolver, with $1 billion of proceeds used to refinance Everi's debt, $2.2 billion allocated to IGT for debt repayment, and the remainder to pay transaction fees and taxes.

The RWP is expected to be resolved upon the completion of the transaction under the announced terms, which is expected to occur in late 2024, or early 2025, Fitch said.

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