Redemption of notes saves IGT money

International Game Technology said last week it will redeem $569.6 million in senior notes that were due May 2009.

The redemption will occur on July 16.

At the same time, the Reno-based manufacturer of gaming equipment said it's terminating a $260 million credit facility and hopes to replace it with a new $1 billion credit facility.

The new credit facility, the company said, is expected to include an $800 million five-year revolving credit line and a $200 million, five-year term loan.

Between the redemption of the senior notes and the new borrowings, IGT said it expects to save $7 million pre-tax in the fourth quarter of its fiscal year and $24 million to $28 million in its next fiscal year.

IGT said it expects to book a loss of $70 million to $90 million during its current quarter in connection with the early retirement of the debt.

The company said, however, that it expects its earnings will be close to the $1.32 a share projected by Wall Street analysts.

(Those estimates don't include the loss from the retiring the senior notes.)

IGT said, too, it expects earnings per share to grow by 15 percent in its next fiscal year.

The company declared a quarterly cash dividend of 10 cents a share payable July 13 to shareholders of record June 29.

IGT's directors in September are expected to review the size of the company's dividend.