June 14, 2012 / 12:30 PM / 6 years ago

IGT to buy back $1 billion shares

(Reuters) - Slot-machine maker International Game Technology (IGT.N) announced a stock repurchase program of up to $1 billion.

The company will buy back about 21 million common shares for $400 million from Goldman Sachs & Co on June 19 as part of the program.

The remaining $600 million is expected to be utilized over the next three to four years, the company said in a statement.

The company had 298.1 million shares outstanding as of March 31.

The new authorization will replace the company’s previously announced $500 million buyback program.

    IGT, which competes with smaller rivals such as Bally Technologies Incs BYI.N, will fund the buyback using cash on hand and borrowings from its revolving credit facility.

    Shares of the company, which has a market value of $3.9 billion, were up 6 percent premarket on Thursday. They closed at $13.22 on Wednesday on the New York Stock Exchange.

    Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Don Sebastian

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