Operator News
Canada – Gateway Casinos refinancing supports Ontario expansion
By Lewis - 13 February 2017
Gateway Casinos & Entertainment intends to complete a refinancing of its existing secured debt consisting of a new capital structure that will include a C$125m senior secured revolving credit facility and a US$440m senior secured term loan facility and US$255m of second priority senior secured notes due 2024.
The proceeds of the refinancing will be to repay all outstanding amounts under Gateway’s existing senior secured credit facility and finance the acquisitions from the Ontario Lottery and Gaming Corporation of certain gaming properties in Ontario, which are expected to be completed in the second quarter of 2017. The Ontario Acquisitions are expected to be immediately accretive to Gateway’s top-line growth, EBITDA margin and full year earnings. The use of proceeds will also include funding new developments and ongoing operations in Western Canada.
The Ontario Acquisitions include certain casinos in Thunder Bay and Sault Ste. Marie, slots in Sudbury (at Sudbury Downs) and two planned casino builds in Kenora and North Bay, as well as a casino in Point Edward and slots in Woodstock (at Woodstock Raceway), London (in the Western Fair District), Clinton (at Clinton Raceway), Dresden (at Dresden Raceway) and Hanover (at Hanover Raceway).
