Great Canadian Gaming is back in the market with TD Securities to fund a $400 million credit facility as part of its recapitalization plan. A five-year, CAN$200 million revolver was launched at a bank meeting in Vancouver the week of Jan. 15 and a six-year, $200 million "B" term loan was launched at a bank meeting in New York last Tuesday, according to a banker. The revolver is priced at LIBOR plus 162.5 basis points and the term loan is priced at LIBOR plus 200 basis points. The company is also issuing $200 million of senior notes led by Goldman Sachs.
The gaming and entertainment company, headquartered in Richmond, B.C., plans to use the proceeds to replace a TD-led $450 million bridge facility it entered into in September to redeem $300 million of its senior secured notes. Moody's Investors Service assigned the company a Ba3 corporate family rating and rated the revolver and term loan Ba2. Moody's commented the company's debt increased significantly to acquire and expand properties over the past few years without a corresponding increase in profitability. Aside from the bridge facility, the company also has about $50 million of outstanding promissory notes from acquisitions in '05, according to a banker. Calls to Milton Woensdregt, cfo, were not returned.