IGT’s board of directors has authorised a new share repurchase programme of up to $1bn of the company’s outstanding common stock.
The US-based slot company has also entered into an accelerated stock buyback agreement with Goldman Sachs, under which it will repurchase approximately $400m of its common stock. The accelerated stock buyback will be conducted as the first part of the company’s new $1bn share repurchase authorisation. The remaining $600m is currently anticipated to be utilised over the next three to four years.
“These actions demonstrate the board of directors’ confidence and IGT’s continued dedication to responsible capital deployment,” the company said. “Over the past 10 years, IGT has returned over $4bn in cash to shareholders in share repurchases and dividends.”
IGT will fund the accelerated stock buyback using cash on hand and borrowings from its revolving credit facility.
Under the terms of the agreement, IGT will pay Goldman Sachs $400m on June 19 and will receive initial deliveries of approximately 21 million shares, representing a substantial majority of the shares expected to be retired over the course of the accelerated stock buyback.
