Gateway Casinos starts roadshow for $225 million seven-year notes

By Paul A. Harris

Portland, Ore., Feb. 8 – Gateway Casinos & Entertainment Ltd. began a roadshow on Wednesday in New York for a $225 million offering of seven-year second priority senior secured notes (Caa1/CCC+), according to a syndicate source.

A New York group lunch and investor conference call were scheduled to get underway at noon ET on Wednesday.

The roadshow moves to Boston on Thursday and to Toronto on Friday.

The Rule 144A and Regulation S for life deal is set to price in the middle part of the Feb. 13 week.

Morgan Stanley & Co., SunTrust Robinson Humphrey, BMO Capital Markets, Macquarie Capital, CIBC World Markets and National Bank of Canada Financial Markets are the joint bookrunners. ING is the co-manager.

The notes come with three years of call protection.

The Burnaby, B.C.-based owner of gaming properties plans to use the proceeds to refinance debt, as well as to fund the acquisition of two “Gaming Bundles” from the Ontario Lottery and Gaming Corp., to fund a dividend to shareholders and for general corporate purposes, including capital expenditures.

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