Gateway Casinos sets roadshow for C$220 million seven-year notes

By Paul A. Harris

Portland, Ore., Nov. 8 - Gateway Casinos & Entertainment Ltd. plans to conduct an investor roadshow beginning on Tuesday in Toronto for an offering of up to C$220 million of seven-year second-priority senior secured notes (expected ratings Caa1/B+/), according to a syndicate source.

An investor call is scheduled for 2:30 p.m. ET on Tuesday.

The roadshow remains in Toronto on Wednesday and then moves to New York and Boston on Thursday and Friday.

TD Securities, BMO Securities, Morgan Stanley & Co. and SunTrust Robinson Humphrey are the active joint bookrunners. Other syndicate members are expected to be announced.

The deal will be marketed via Rule 144A in the United States.

The notes become callable in three years at par plus 50% of the coupon.

Proceeds will be used to refinance the company's existing senior secured credit facility, to fund the tender for C$170 million of its 8 7/8% second-priority senior secured notes due 2017 and to fund a distribution to shareholders.

The prospective issuer is a Burnaby, B.C.-based owner of gaming properties.

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