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Favorable adjustment to our private equity analysis

THE CALL TO ACTION - REVISED IRR

In our IGT note and presentation ealier today we communicated IGT could be worth $18-22 to a private equity firm and would yield an IRR of 21%-33%. However, we found a data flow through error (related to D&A) from our forecasting model to our LBO calculation.  After updating our model, the IRR on a go private transaction at $18 or $22/share would be 36% and 24%, respectively - about 300 bps higher than our initial analysis. Our leverage and coverage ratios also improve as a result of the higher calculated EBITDA. 


We apologize for the error and inconvenience.  Please see our revised data table for additional details.

IGT:  ADDENDUM TO OUR GO PRIVATE CALCULATION - IGT Table

Please call us, if you'd like to discuss further.