{"id":8098,"date":"2024-10-28T12:10:05","date_gmt":"2024-10-28T12:10:05","guid":{"rendered":"https:\/\/slategray-wallaby-310340.hostingersite.com\/index.php\/2024\/10\/28\/gateway-casinos-eyes-cad-1-8-billion-in-private-debt-for-strategic-growth\/"},"modified":"2024-10-28T12:10:05","modified_gmt":"2024-10-28T12:10:05","slug":"gateway-casinos-eyes-cad-1-8-billion-in-private-debt-for-strategic-growth","status":"publish","type":"post","link":"https:\/\/casino-online-best.com\/index.php\/2024\/10\/28\/gateway-casinos-eyes-cad-1-8-billion-in-private-debt-for-strategic-growth\/","title":{"rendered":"Gateway Casinos Eyes CAD 1.8 Billion in Private Debt for Strategic Growth"},"content":{"rendered":"
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One of Canada\u2019s largest casino operators, Gateway Casinos & Entertainment, plans to issue private debt in order to obtain CAD 1.8 billion ($1.3 billion). According to insiders cited by Bloomberg, this action will allow the corporation to pay dividends to shareholders while refinancing its current debt. The offer, which is being arranged by investment company Morgan Stanley, has the potential to rank among Canada\u2019s largest private debt deals this year if it is successful.<\/p>\n

In order to obtain favorable conditions for Gateway Casinos, which is mostly owned by Catalyst Capital Group, Morgan Stanley is looking into a variety of financing options. Depending on input from possible lenders, the debt structure may change, enabling flexibility in lending terms and quantities. Although the plans didn\u2019t work out, Catalyst Capital, which has been managing Gateway\u2019s operations since 2009, even contemplated selling the business last year.<\/p>\n

Credit Constraints Push Gateway Toward Private Debt Market<\/strong><\/h2>\n

Gateway\u2019s path to private credit reflects the challenges it faces in traditional capital markets due to a \u201cB3\u201d credit rating from Moody\u2019s. Although Moody\u2019s improved this rating in November 2022, it remains within the \u201crisky\u201d category, complicating Gateway\u2019s access to public financing. Private debt markets, often supported by non-bank investors like hedge funds and private equity firms, provide financing options for companies facing limited access to conventional loans.<\/p>\n

With the U.S. private credit market valued at around $1.7 trillion, non-bank lending has become increasingly attractive as lenders seek opportunities that bypass traditional syndicated markets. Private lenders, eager to capture unique deals, have recently leaned into riskier loans, evidenced by high-profile financings like Pure Fishing\u2019s recent $750 million loan.<\/p>\n

Gateway\u2019s debt-raising effort aligns with a broader industry trend among Canadian gaming companies. In a recent example, Great Canadian Gaming Corporation, owned by Apollo Global Management, launched a $665 million term loan in the U.S. leveraged loan market. Great Canadian\u2019s restructuring plan is geared toward reducing interest expenses, a strategy Gateway may also employ by tapping private debt markets for better terms.<\/p>\n

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