Gateway Casinos sets talk for $305 million seven-year term loan

By Paul A. Harris

Portland, Ore., Feb. 28 – Gateway Casinos & Entertainment Ltd. talked its $305 million seven-year senior secured term loan B (Ba3/BB-) with a 325 basis points spread to Libor and a 0% Libor floor at 99.75, according to a market source.

The deal is subject to a springing maturity, features a six-month soft call at 101, and amortizes at 1% annually.

Commitments are due at 5 p.m. ET on Tuesday.

Morgan Stanley Senior Funding, Inc., SunTrust Robinson Humphrey, Inc., BMO Capital Markets Corp., Credit Suisse AG, Goldman Sachs Lending Partners, Macquarie Capital (USA) Inc. and National Bank of Canada are the joint bookrunners and joint lead arrangers. BMO is the administrative agent.

The Burnaby, B.C.-based owner of gaming properties plans to use the proceeds, along with proceeds from an announced sale-leaseback, to repay and refinance its existing term loans, to repay its outstanding revolver, to repay the Langley mortgage, to fund a distribution to shareholders and for general corporate purposes.

The financing will also include a $150 million five-year revolver.

In conjunction with the financing the company is soliciting consents from the holders of $255 million of its second priority senior secured notes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.