Gateway may amend revolver, term loans to fund offer for 8 7/8% notes

By Susanna Moon

Chicago, Nov. 4 - Gateway Casinos & Entertainment Ltd. said it plans to enter into secured financing arrangements of about C$510 million, which includes an amendment and restatement of Gateway's senior secured credit facility consisting of a revolver and term loan facilities.

The financing also may consist of one or more new issuances of second-priority senior secured notes, according to a company press release.

The company began a cash tender offer to purchase its C$170 million outstanding aggregate principal amount of 8 7/8% second-priority senior secured notes due 2017.

Gateway is also soliciting consents to amend the notes to eliminate most of the restrictive covenants and events of default, release the guarantees of the guarantors under the indenture and release all of the collateral securing the obligations of the company, according to a press release.

The tender offer will end at 11:59 p.m. ET on Dec. 3.

The offer is conditioned on the company receiving the required consents for the proposed amendments and the completion of refinancing.

The Gateway portfolio of gaming properties includes Grand Villa Casino Hotel & Conference Centre in Burnaby, Starlight Casino in New Westminster, Cascades Casino Hotel & Convention Centre in Langley, Lake City Casinos in Vernon, Kamloops, Kelowna and Penticton, Baccarat Casino and Palace Casino in Edmonton, and Community Gaming Centres in Mission, Squamish and Surrey. The company is based in Burnaby, B.C.

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