Daily News: March 14, 2018

Morgan Stanley Leads Gateway Casinos Refinancing


Gateway Casinos & Entertainment completed the refinancing of its existing credit facilities. The new credit facility includes a $335 million senior secured term loan facility and a C$150 million ($115.4 million) senior secured revolving credit facility (of which $25 million may be denominated in U.S. dollars). As previously announced, the new senior secured credit facility was increased by $30 million from its original target as a result of strong investor demand.

The transactions were executed by a syndicate of investment banks led by Morgan Stanley Senior Funding and included SunTrust Robinson Humphrey, BMO Capital Markets, Credit Suisse Securities (USA), Goldman Sachs Lending Partners, Macquarie Capital (USA), National Bank of Canada, Canadian Imperial Bank of Commerce and ING Capital.

The proceeds of the new senior secured credit facility will be used to 1) refinance the remaining commitments and loans under Gateway’s existing senior secured credit facility after giving effect to the repayment of the existing loans using the proceeds of the company’s recently consummated sale-leaseback transaction; 2) complete a return of capital, dividend or other similar distribution of approximately $100 million; 3) fund general corporate purposes (including capital expenditures); 4) repay in full the mortgage on the Cascades Casino Langley and 5) pay related fees and expenses incurred in connection with the foregoing

“Following the saleleaseback of three properties in Vancouver and the successful completion of a broad debt refinancing, Gateway is well positioned to invest in its operations and growth. Gateway has become the standard for gaming and hospitality in Canada and we look forward to continuing to build on our leadership position,” said Tony Santo, Gateway’s CEO.

Operating in British Columbia, Edmonton and Ontario, Gateway is a diversified gaming and entertainment company in Canada.