Great Canadian Gaming to extend revolver maturity, repay term loan

By Sara Rosenberg

New York, July 5 - Great Canadian Gaming Corp. plans to extend its C$350 million senior secured revolver and swingline facility by one year to July 21, 2017, according to a news release.

Also, the company intends to repay its $161.1 million senior secured term loan B due February 2014 and its $170 million senior subordinated notes due February 2015 with proceeds from a proposed C$400 million 10-year senior unsecured notes offering.

Furthermore, the company will offer to purchase up to C$100 million of its outstanding common shares from shareholders at a price of C$10 per share. This offer is subject to successful completion of the refinancing.

"The refinancing being undertaken at this time will provide Great Canadian with greater term certainty on its long-term debt, while taking advantage of funding in its primary currency offered by the Canadian dollar high-yield market," said Rod Baker, president and chief executive officer, in the release.

"Great Canadian continues to enjoy a secure and flexible financial position and the substantial issuer bid represents an opportunity for the company to return up to C$100 million of capital to shareholders who elect to tender, while increasing the proportionate ownership interest of shareholders who elect not to tender. We believe that this repurchase is a good use of corporate liquidity, creating value for our shareholders," Baker added.

Great Canadian Gaming is a Richmond, B.C.-based gaming, entertainment and hospitality operator.

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