Canada’s gaming giant, Gateway Casinos & Entertainment Ltd., is on the hunt for as much as C$1.8 billion (approximately $1.3 billion) in private debt. This move aims to refinance existing loans and provide dividends to its owners, potentially marking one of the largest private debt deals in Canada this year.
Working closely with Morgan Stanley, Gateway is reaching out to lenders, although discussions are still in the early stages. According to sources familiar with the situation, the size and specifics of the deal could evolve as negotiations progress. Gateway Casinos is primarily owned by Newton Glassman’s Catalyst Capital Group Inc., but representatives from both firms have not commented on the ongoing discussions.
Navigating a Competitive Private Credit Market
The $1.7 trillion private credit market is currently facing stiff competition from broadly syndicated markets vying to provide financing solutions. Recent trends indicate a surge in the US leveraged loan market, which has seen record issuance driven by loan repricings and refinancing activities. This competitive environment means that direct lenders are increasingly interested in borrowers like Gateway, sometimes exploring riskier credits or innovative financing options.
For example, Pure Fishing Inc. recently secured a $750 million private credit deal, while Lycra Co. is also in talks for a private debt transaction. These developments reflect a broader trend in the industry as lenders seek new opportunities amid evolving market conditions.
Gateway’s Strategic Moves
Gateway Casinos, which boasts a portfolio of 31 properties, is navigating its own strategic landscape. Last year, the company engaged advisers to explore potential sales or other strategic options, indicating a proactive approach to its financial future. This latest initiative to secure substantial private debt comes in the wake of similar moves by its peer, Great Canadian Gaming Corp., which recently launched a $665 million term loan to refinance its debt.
With Gateway’s bold plans to raise $1.3 billion, the gaming industry in Canada is poised for potential shifts. This effort not only reflects Gateway’s ambitions but also highlights the growing appetite for private debt financing in a competitive market.
As the story unfolds, all eyes will be on Gateway Casinos and its next steps in reshaping the landscape of Canada’s gaming sector. Will this move pay off, and how will it influence the broader market? Stay tuned!

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