May 6, 2009 (FinancialWire) — International Game Technology (NYSE: IGT) has priced $725 million of its 3.25% convertible notes due 2014 in a private offering. IGT increased the size of the Notes offering from $500 million to $725 million due to strong investor demand, according to the company.

The company has also granted the initial purchasers an option to purchase up to an additional $125 million of notes within 13 days from the first issue date of the motes solely to cover over-allotments.

IGT said the notes will be general unsecured senior obligations of IGT and will pay cash interest semiannually at a rate of 3.25% per annum. They will be convertible at the option of the holders into cash up to the principal amount and, if applicable, shares of IGT common stock in excess of the principal amount.

The initial conversion rate of the notes is 50.0808 shares of IGT common stock per $1,000 principal amount of notes, corresponding to a conversion price per share of around $19.97.

In order potentially to reduce the dilution from conversion of the notes, IGT will use a portion of the net proceeds of the offering to pay the net cost of a convertible note hedge and warrant transactions.

IGT plans to use the remaining proceeds from the offering to pay down outstanding revolving indebtedness under its senior credit facility.

Reno, Nevada-based International Game Technology specializes in the design, development, manufacturing, distribution and sales of computerized gaming machines and systems products.

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