The arrangement includes capital structure refinancing and repayment of CAD$200m (US$161.7m) of an outstanding loan.
Canada.- Gateway Casinos & Entertainment Limited has announced that it has closed a US$1.25bn senior secured term loan B issuance to refinance its capital structure and fund cash to the balance sheet. Funds managed by affiliates of Fortress Investment Group LLC were lead investors in the transaction.
The proceeds were used to refinance all of Gateway’s existing corporate debt at both Gateway Casinos & Entertainment Limited and GTWY Holdings Limited. This included the Large Employer Emergency Financing Facility loan the company agreed to in September 2020.
Gabriel de Alba, executive chairman of Gateway, said, “We are very pleased to have completed this significant refinancing with Fortress as the lead investor.”
He added: “As Gateway re-opened its operations in the third quarter, the company’s focus on operational discipline, including a more streamlined cost structure, and our focus on our guest experience, has led to performance that has exceeded our expectations.”
“We are grateful for the ongoing support of all our stakeholders and regulatory partners and proud to have now strengthened our capital position which will support our future growth initiatives, including online gaming opportunities.”
Tony Santo, Gateway’s chief executive officer, said, “We appreciate the support of our new lenders as the refinancing of our entire capital structure, and the repayment of the full amount that was outstanding on our LEEFF loan facility, has positioned the company with the financial flexibility to continue delivering excellent customer experiences.”
Fortress managing partner Josh Pack added: “Gateway has done an exceptional job in navigating and emerging from a historically challenging period”, and said they are thrilled to provide Gateway with a capital solution that will position the company for profitable growth and success in the years ahead.