Gateway Casinos, a major player in the Canadian casino industry with 31 properties across Ontario, Alberta, and British Columbia, is currently in the process of securing $1.3 billion in private debt. This move is aimed at refinancing existing loans and allowing the company to pay dividends to its owners. To facilitate this process, Gateway Casinos has enlisted the services of Morgan Stanley to source the necessary funds from lenders.
According to a report by Bloomberg, Morgan Stanley is actively exploring various lenders to ensure that Gateway Casinos secures the best possible deal. The exact size of the debt and the terms of the agreement are still being negotiated, indicating that the process is still in its early stages. This strategic move comes on the heels of Catalyst Capital Group Inc., the company’s owner since 2009, exploring different options for Gateway Casinos, including a potential sale.
Gateway Casinos’ biggest competitor in Canada, Great Canadian Gaming Corporation, also recently announced its own refinancing plans. The Apollo Global Management subsidiary revealed that it is refinancing debt through a $665 million term loan from the US leveraged loan market. This development underscores the competitive nature of the casino industry in Canada and the importance of securing favorable financing arrangements to support growth and expansion.
Overall, Gateway Casinos’ decision to seek private debt financing reflects its commitment to strengthening its financial position and pursuing strategic opportunities in the market. By partnering with Morgan Stanley and engaging in negotiations with potential lenders, the company is positioning itself for future success and growth in the dynamic and competitive casino industry.