Gateway Casinos and Entertainment Limited found a solution for its $1.25 billion in corporate debt by completing the process of refinancing. The operator of 23 Canadian casinos received a Senior Secured Term Loan B from Fortress Investment Group, a lead investing organization.

The Funds Were Used to Refinance Gateway’s Debt

The money that the company received from Fortress was used to refinance the existing debt at GTWY Holdings Limited and Gateway Casinos & Entertainment Limited. The Large Employer Emergency Financing Facility loan that Gateway agreed to in 2020 was also included in the refinancing part.

The executive chair of the company, Gabriel de Alba, stated that Gateway is delighted to complete this important refinancing and have a lead investor like Fortress. He went on to say that the company appreciates the support of its regulatory partners and stakeholders and it is now proud to strengthen its capital position. He added that the company will be able to continue growing and support its initiatives in the future, one of which is online gaming.

The online gaming industry in Canada is on the rise and the government is becoming extremely flexible toward these activities. Online sports betting is also on the rise, as single-event wagering went live recently.

Gateway Is Known for Overcoming Challenges Over the Years

After signing a multi-year deal with the NFL, Gateway became the first Canadian casino partner of this prestigious sports competition. Back in 2019, Gateway was also the center of attention as this diverse entertainment operator officially announced that it will merge with Leisure Acquisition Corp. Although the deal came at a pretty big cost – $1.12 billion, it allowed Gateway to enter stock markets without actually going through the process of an IPO.

Thanks to the merger, the new combined company was able to use its financial resources to pay off GTWY’s $154 million debt. Events such as these proved to Fortress that Gateway is more than capable of navigating through challenging periods and that it always came out on top. That is the reason why Fortress wanted to offer a helping hand to the company and make sure that it will turn all future plans into reality.

While speaking on the success that the company had over the years, Josh Pack, the managing partner of Fortress, stated that Gateway has done a marvelous job in navigating and succeeding in a period that has proven to be one of the most challenging in history. He concluded by saying that Fortress is more than happy to offer a capital solution to Gateway, a solution that will put the company on the right track and allow it to have success and profitable growth in the upcoming years.