Northern Ontario OLG gaming operator seeks non-public market debt financing to boost $1.8 billion in money
Gateway Casinos, operators of Cascades On line casino in North Bay, and areas in Sault Ste. Marie, Sudbury, and Thunder Bay is reportedly trying to safe US$1.8 billion in non-public credit score.
Citing nameless sources, Bloomberg is reporting that one among Canada’s largest gaming corporations is working with Morgan Stanley to achieve out to lenders to assist refinance its loans and pay its homeowners a dividend.
Gateway has been majority-owned by Catalyst Capital Group, a personal fairness agency, since 2009. It runs 31 gaming venues in Ontario, Alberta and B.C.
Bloomberg mentioned these non-public discussions are on the preliminary stage and that the main points and scope of a possible deal may change. The Bloomberg article didn’t dispense any additional info on the extent of Gateway’s debt scenario.
Bloomberg was unable to acquire remark from Catalyst nor Morgan Stanley.
In October final yr, Bloomberg reported that Catalyst was thought of a sale amongst different strategic choices.
An article in On line casino.org mentioned a ranking by Moody’s Investor Service carried out in November 2022 upgraded the on line casino operator to “B3” from “Caa1.”
“The ‘B3’ grade is six notches into junk territory at Moody’s,” the article mentioned.
A gaming rival, Nice Canadian Leisure, owned by Apollo International Administration, can be out to acquire a $665-million mortgage within the U.S. to pay down its debt with increased rates of interest. Nice Canadian has 25 areas in Ontario, B.C., New Brunswick and Nova Scotia.
