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