Ratings agency Fitch has maintained IGT and Everi on Rating Watch Positive following last week’s announcement that IGT’s Gaming & Digital business and Everi Holdings Inc would be acquired by Apollo Global Management in a US$6.3 billion deal. Closing of the deal, which follows earlier news that IGT would merge its Gaming & Digital business with Everi, is expected to take place by the end of 3Q25.
Under the new Apollo deal, the IGT-Everi merger won’t technically go ahead although the two will still come together under a new Apollo-owned firm, with IGT receiving US$4.05 billion in cash for the Gaming & Digital business, leaving it as a pure lottery play.
According to Fitch, the new-look IGT – which is also expected to change its ticker on the New York Stock Exchange – will allocate around US$2 billion to pay down existing debt, specifically a term loan along with other instruments at management’s discretion.
“Fitch does not expect any material changes to the capital structure and respective recoveries,” the agency said. “Fitch’s rating on the existing senior secured debt at IGT and IGT Lottery Holdings B.V. is ‘BBB-’/‘RR2’.
“Our last rating action was taken on 1 March 2024 when we placed IGT and IGT Lottery Holdings B.V. on Rating Watch Positive. The rating action reflected the creation of a pure play lottery business which has a leading market position and will retain predictable and resilient cash flows, a simplified capital structure along with EBITDA leverage driving down to sub-3.0x at closing, and strong liquidity.
“Everi’s management anticipates that its existing debt will be refinanced at closing.”
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