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GTECH obtains financing to complete IGT acquisition

Italy-based lottery provider GTECH Holdings said Tuesday it completed $5 billion in high-yield financing needed to complete its buyout of slot machine giant International Game Technology.

The transaction, expected to close in the spring, is valued at $6.4 billion.

International Game Technology shareholders voted Tuesday to approve the buyout, with more than 99 pecent of votes cast in favor. The votes represented 72 percent of the total outstanding common stock eligible to vote as of the Jan. 2 record date.

The pricing of the high-yield notes included $3.2 billion in American dollars and 1.6 billion in Euros.

GTECH CFO Alberto Fornaro said in a statement the financing will not have any “significant maturity” dates before 2018.

“It is the inaugural issuance in the U.S. and the first time we have launched a global deal,” Fornaro said. “Overall, this is another important step toward the close of the IGT transaction.”

In a statement, GTECH said the company and IGT would merge into Georgia Worldwide with the ordinary shares listed on the New York Stock Exchange. GTECH said in an email the name is just a “place holder.”

IGT agreed last summer to be acquired by GTECH for $4.7 billion in cash and stock, and assumption of $1.7 billion of the Nevada-based slot maker’s debt.

Under terms of the agreement, IGT and GTECH will combine under a new holding company with corporate headquarters in the United Kingdom. The company will maintain operating headquarters in Las Vegas; Providence, R.I.; and Rome.

The deal still requires approval of Nevada gaming regulators.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Find him on Twitter: @howardstutz

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