NorthStar Gaming has secured a major financing deal. The company announced a $43.4 million CAD senior secured loan. The funds will help NorthStar pay down existing debt and support expansion.
- Credit Facility: NorthStar signed a credit agreement for a $43.4 million CAD loan from Beach Point Capital Management. Playtech and its subsidiaries are providing credit support to back the facility. The loan is pending final approval from the TSX Venture Exchange.
- CEO statement: NorthStar CEO Michael Moskowitz said the funding is a milestone, reinforcing the company’s growth strategy and path to profitability. He credited Beach Point for its trust and highlighted Playtech’s role in securing the deal.
- Investor perspective: Gabriel Fineberg, Managing Director at Beach Point, emphasized confidence in NorthStar’s leadership and the gaming sector’s rapid growth. He noted Playtech’s technology and strategic support as key factors in the investment.
- Use of funds: NorthStar will allocate the financing to repay $9.5 million CAD in existing loans from Playtech, fund a $7 million CAD interest reserve, cover transaction costs, and support working capital and corporate needs.
- Loan terms: The financing carries an interest rate of SOFR + 9.35% with a minimum SOFR floor of 4.40%.
- Security details: The loan is secured by a first-priority lien on nearly all of NorthStar’s assets. NorthStar and its subsidiaries are guarantors, backing the company’s obligations under the agreement.
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