Gateway Casinos & Entertainment Limited Completes Refinancing of Corporate Debt in USD $1.25 Billion Transaction

BURNABY, British Columbia–(Small business WIRE)–Gateway Casinos & Amusement Constrained (“Gateway” or “the Company”) currently announced that it has closed a US$1.25 billion Senior Secured Term Personal loan B issuance to refinance its funds composition and fund money to the equilibrium sheet. Funds managed by affiliates of Fortress Financial commitment Group LLC (“Fortress”) have been lead buyers in the transaction.

Gabriel de Alba, Government Chairman of Gateway, mentioned, “We are extremely happy to have completed this sizeable refinancing with Fortress as the lead investor. As Gateway re-opened its operations in the 3rd quarter, the company’s target on operational self-discipline, which include a far more streamlined price tag construction, and our emphasis on our guest encounter, has led to functionality that has exceeded our anticipations. The company’s potential to move so rapidly following these types of intense constraints is testament to our management group and staff, and our focus on preserving as considerably liquidity as feasible in the course of the pandemic, together with by the support of the Canadian government’s LEEFF plan. We are grateful for the ongoing help of all our stakeholders and regulatory associates and very pleased to have now strengthened our funds position which will support our long run advancement initiatives, like on the net gaming opportunities.”

Tony Santo, Gateway’s Chief Executive Officer, stated, “Gateway is a special gaming and leisure firm that due to the fact reopening in British Columbia and Ontario next an extended time period of closure thanks to the COVID pandemic, has created greater house level running margins and altered EBITDA than anticipated. We recognize the aid of our new creditors as the refinancing of our complete capital construction, and the compensation of the whole amount of money that was fantastic on our LEEFF financial loan facility, has positioned the corporation with the economical adaptability to proceed providing exceptional shopper ordeals in gaming, meals and beverage and entertainment at our attributes, restarting our improvement projects and driving performance that can carry on to aid further deleveraging of our money construction.”

“Gateway has finished an fantastic career in navigating and rising from a traditionally tough interval,” mentioned Fortress Controlling Associate Josh Pack. “We are thrilled to offer Gateway with a capital answer that will position the organization for financially rewarding progress and achievement in the many years ahead.”

Transaction Particulars:

The Senior Secured Time period Mortgage B carries both of those USD (US$1,073,150,000) & CAD (C$218,640,000) denominated term bank loan tranches, which experienced 6 several years from the closing date, providing Gateway with significant maturity runway and further liquidity to fund its operations.

Pricing of the USD denominated expression financial loan is tied to the secured overnight funding rate (“SOFR”) moreover a credit distribute adjustment (“CSA”) of 10 foundation points for the a person-month amount and 15 bps for the three-month rate, marking it as one particular of the very first institutional phrase financial loans to be issued utilizing SOFR pricing starting off at the closing day. The USD denominated phrase loan carries a coupon of SOFR+CSA+800 bps, although the CAD denominated phrase personal loan carries a coupon of CDOR+800 bps. Both phrase loans carry .75% flooring, 1.00% amortization for every annum, and were issued at 98.00 OID. Throughout the preliminary 18 months article-closing, Gateway maintains the choice to PIK up to 300 bps of the phrase loans’ discount codes, issue to a 150 bps premium.

The time period financial loans offer Gateway the flexibility to voluntarily prepay at 103%, 102%, and 101% of principal amount of money in the initial a few several years post-closing, respectively, and incorporate a special optional redemption right at 101% of Par for up to US$400MM applying proceeds from a experienced equity issuance or in connection with a merger or sale.

Net proceeds from the transaction ended up utilised to refinance all of Gateway’s present corporate credit card debt at equally Gateway Casinos & Enjoyment Confined and GTWY Holdings Constrained, which includes the Big Employer Unexpected emergency Financing Facility loan agreed to in September 2020, simplifying the Company’s capital framework.

In relationship with this refinancing transaction, Gateway been given a meaningful corporate credit score rating upgrade at Moody’s to Caa1 (Beneficial Outlook).

Morgan Stanley Senior Funding, Inc. served as Sole Lead Bookrunner. Fortress Credit rating Corp. and Morgan Stanley Senior Funding, Inc. served as Joint Guide Arrangers.

About Gateway Casinos & Enjoyment Constrained

Gateway Casinos & Entertainment Confined (“Gateway”) is 1 of the major and most diversified gaming and amusement firms in Canada with 26 gaming homes in British Columbia and Ontario and two additional properties in Edmonton, Alberta. As at March 16, 2020, right away prior to the implementation of COVID-19 restrictions, our functions comprised of 26 gaming attributes in British Columbia and Ontario, with 12,971 slot devices, 365 table games (inclusive of 41 poker tables), 902 bingo seats and 79 food and beverage (“F&B”) retailers. As at July 14, 2021, we experienced close to 6,500 workers in British Columbia and Ontario. A multi-pronged development technique has viewed Gateway diversify and expand its product offering, such as building proprietary on line casino and restaurant brands, drastically strengthening the gaming consumer knowledge whilst attracting new consumers. Some of Gateway’s proprietary models include things like Match Eatery & Community Property, Atlas Steak + Fish and the new Halley’s Club. In 2017, Gateway celebrated 25 a long time in the business enterprise of gaming and leisure in Canada. Further information and facts is offered at www.gatewaycasinos.com.

About Fortress

Established in 1998, Fortress manages $53.9 billion of assets less than management as of June 30, 2021, on behalf of about 1,800 institutional customers and private traders globally throughout a variety of credit score and true estate, private fairness and lasting funds financial investment approaches.

About The Catalyst Cash Team

The Catalyst Cash Group Inc., a non-public equity financial commitment agency with additional than $6 billion in property under management launched in 2002, is a chief in operationally targeted turnaround investing. The firm’s mandate is to manufacture threat adjusted returns, in holding with its philosophy of “we acquire what we can develop.” Catalyst’s Guiding Principles of expense excellence by operational involvement, superior analytics, awareness to element, intellectual curiosity, crew and track record are important to the firm’s good results. The Catalyst workforce collectively possesses far more than 110 yrs of extensive experience in restructuring, credit rating marketplaces and merchant and expense banking in Canada, the United States, Latin The us and Europe.