Gateway Casinos & Entertainment completed the refinancing of its existing credit facilities and secured a new capital structure to support the company’s growth initiatives.
The new structure includes a C$125 million (US$95 million) senior secured revolving credit facility, a senior secured term loan facility comprising a US$405 million tranche and C$80 million (US$61 million) tranche and US$255 million of second priority senior secured notes due 2024.
In addition, the new senior secured credit facility was increased by US$25 million from its original. Gateway’s cost of capital has been reduced with this transaction while obtaining financial flexibility and long-term maturities.
The transactions were executed by a syndicate of investment banks led by Morgan Stanley and included SunTrust Robinson Humphrey, BMO Capital Markets, Macquarie Capital, CIBC Capital Markets, National Bank of Canada Financial Markets and ING.
“Gateway is well positioned for continued development and growth across its platform of operations and we look forward to bringing our unique brands and experiences to Ontario,” said Tony Santo, Gateway’s CEO. “Gateway has a great portfolio that represents a higher standard for gaming and entertainment in the industry. Upon completion, the Ontario acquisitions are expected to be immediately accretive to Gateway’s revenue, EBITDA and earnings, giving us additional capacity to invest in the businesses while reducing leverage over time.”
Gateway Casinos & Entertainment Limited is a Canadian gaming company.