NorthStar Gaming Announces $43.4 Million Long-Term Debt Financing
NorthStar Gaming Holdings (TSXV: BET, OTCQB: NSBBF) has secured a $43.4 million CAD senior secured first lien term loan facility from Beach Point Capital Management. The Credit Facility, representing the largest financing in the company's history, includes support from Playtech plc through credit guarantees.
Key terms include an interest rate of SOFR + 9.35% with a 4.40% SOFR floor, maturing January 24, 2030. The loan features payment deferral for 30 months, followed by graduated amortization. Proceeds will be used to repay $9.5 million CAD in Playtech loans, fund a $7 million CAD interest reserve, and support working capital.
As part of the agreement, Playtech received 32,735,295 common share purchase warrants at $0.055 CAD per share, exercisable until January 24, 2030. The financing aims to strengthen NorthStar's balance sheet and accelerate growth initiatives toward profitability.
NorthStar Gaming Holdings (TSXV: BET, OTCQB: NSBBF) ha ottenuto un prestito senior garantito di 43,4 milioni di dollari CAD da Beach Point Capital Management. Questo finanziamento, che rappresenta il più grande in assoluto nella storia dell'azienda, include il supporto da Playtech plc attraverso garanzie creditizie.
I termini principali includono un tasso d'interesse di SOFR + 9,35% con un floor di SOFR del 4,40%, in scadenza il 24 gennaio 2030. Il prestito prevede un rinvio dei pagamenti per 30 mesi, seguito da un'ammortizzazione graduata. I proventi saranno utilizzati per rimborsare 9,5 milioni di dollari CAD in prestiti da Playtech, finanziare un fondo d'interesse di 7 milioni di dollari CAD e supportare il capitale circolante.
Come parte dell'accordo, Playtech ha ricevuto 32.735.295 warrant di acquisto di azioni ordinarie a 0,055 dollari CAD per azione, esercitabili fino al 24 gennaio 2030. Il finanziamento punta a rafforzare il bilancio di NorthStar e accelerare le iniziative di crescita verso la redditività.
NorthStar Gaming Holdings (TSXV: BET, OTCQB: NSBBF) ha conseguido un préstamo senior garantizado por un monto de 43.4 millones de dólares CAD de Beach Point Capital Management. Este financiamiento, que representa la mayor cantidad en la historia de la empresa, incluye el apoyo de Playtech plc a través de garantías crediticias.
Los términos clave incluyen una tasa de interés de SOFR + 9.35% con un piso de SOFR del 4.40%, con vencimiento el 24 de enero de 2030. El préstamo presenta un aplazamiento de pagos por 30 meses, seguido de una amortización graduada. Los ingresos se utilizarán para reembolsar 9.5 millones de dólares CAD en préstamos de Playtech, financiar una reserva de intereses de 7 millones de dólares CAD, y apoyar el capital de trabajo.
Como parte del acuerdo, Playtech recibió 32,735,295 opciones de compra de acciones comunes a 0.055 dólares CAD por acción, ejercitables hasta el 24 de enero de 2030. El financiamiento tiene como objetivo fortalecer el balance de NorthStar y acelerar las iniciativas de crecimiento hacia la rentabilidad.
NorthStar Gaming Holdings (TSXV: BET, OTCQB: NSBBF)는 Beach Point Capital Management로부터 4,340만 CAD의 선순위 담보 대출 시설을 확보했습니다. 이번 자금 조달은 회사 역사상 가장 큰 규모로, Playtech plc의 신용 보증 지원을 포함하고 있습니다.
주요 조건으로는 SOFR + 9.35%의 이자율과 4.40% SOFR 바닥이 있으며, 만기는 2030년 1월 24일입니다. 이 대출은 30개월 동안 상환 유예 조건을 가지며, 이후 점진적인 상환이 이루어집니다. 수익금은 Playtech에 대한 950만 CAD의 대출을 상환하고, 700만 CAD의 이자 준비금을 조성하며, 운영 자본을 지원하는 데 사용될 것입니다.
계약의 일환으로, Playtech는 0.055 CAD의 가격으로 32,735,295주의 보통주 매수 워런트를 취득했으며, 이는 2030년 1월 24일까지 행사 가능합니다. 이번 자금 조달은 NorthStar의 재무 상태를 강화하고 수익성 향상을 위한 성장 전략을 가속화하는 데 목적이 있습니다.
NorthStar Gaming Holdings (TSXV: BET, OTCQB: NSBBF) a sécurisé une facilité de prêt senior garanti de 43,4 millions CAD auprès de Beach Point Capital Management. Cette facilité de crédit, qui représente le plus grand financement de l'histoire de l'entreprise, inclut le soutien de Playtech plc par le biais de garanties crédit.
Les conditions clés incluent un taux d'intérêt de SOFR + 9,35% avec un plancher SOFR de 4,40%, arrivant à maturité le 24 janvier 2030. Le prêt prévoit un report des paiements de 30 mois, suivi d'une amortissement gradué. Les produits seront utilisés pour rembourser 9,5 millions CAD de prêts à Playtech, financer une réserve d'intérêt de 7 millions CAD, et soutenir le fonds de roulement.
Dans le cadre de l'accord, Playtech a reçu 32.735.295 bons de souscription d'actions ordinaires à 0,055 CAD par action, exerçables jusqu'au 24 janvier 2030. Le financement vise à renforcer le bilan de NorthStar et à accélérer les initiatives de croissance vers la rentabilité.
NorthStar Gaming Holdings (TSXV: BET, OTCQB: NSBBF) hat eine senior gesicherte Erstlinien-Darlehensfazilität über 43,4 Millionen CAD von Beach Point Capital Management gesichert. Diese Kreditfazilität, die die größte Finanzierung in der Unternehmensgeschichte darstellt, beinhaltet Unterstützung von Playtech plc durch Kreditgarantien.
Die wichtigsten Bedingungen umfassen einen Zinssatz von SOFR + 9,35 % mit einem SOFR-Boden von 4,40 %, fällig am 24. Januar 2030. Das Darlehen sieht eine Zahlungsstundung von 30 Monaten vor, gefolgt von einer gestaffelten Amortisation. Die Erlöse werden verwendet, um 9,5 Millionen CAD an Playtech-Darlehen zurückzuzahlen, einen Zinsvorbehalt von 7 Millionen CAD zu finanzieren und das Betriebskapital zu unterstützen.
Im Rahmen der Vereinbarung erhielt Playtech 32.735.295 Bezugsrechte auf Stammaktien zu einem Preis von 0,055 CAD pro Aktie, die bis zum 24. Januar 2030 ausgeübt werden können. Die Finanzierung soll die Bilanz von NorthStar stärken und Wachstumsinitiativen in Richtung Rentabilität beschleunigen.
- Secured substantial $43.4M CAD long-term debt financing
- 30-month payment deferral period provides operational flexibility
- Strategic partnership with Playtech strengthened through credit support
- High interest rate of SOFR + 9.35% with 4.40% floor
- Potential dilution from 32.7M warrants issued to Playtech
- $9.5M CAD of proceeds allocated to existing debt repayment
Toronto, Ontario--(Newsfile Corp. - January 27, 2025) - NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") is pleased to announce the Company has, subject to final approval of the TSX Venture Exchange, entered into a credit agreement (the "Credit Agreement") in respect of a senior secured first lien term loan facility providing for loans in an aggregate principal amount of up to
Executive Commentary
"This is a pivotal moment for NorthStar, marking the largest financing in our history. This Credit Facility strengthens our balance sheet and directly supports our ability to scale operations and drive the business towards profitability with a single-minded focus," said Michael Moskowitz, Chair and CEO of NorthStar. "We are grateful to Beach Point Capital Management for their trust in our strategy and vision. We are also thankful for Playtech's steadfast partnership which was instrumental in securing this funding, reinforcing their value both strategically and as a technology provider."
"Beach Point has deep experience investing across the gaming sector and is excited to partner with NorthStar to support their strategic initiatives. The online gaming sector has been growing rapidly, and this investment reflects our confidence in the Company's leadership, market potential, and ability to deliver long-term sustainable growth. Likewise, we value the partnership with Playtech, who are contributing their leading technology, global reach, and strategic vision towards NorthStar's continued success," said Gabriel Fineberg, Managing Director at Beach Point.
Purpose of the Credit Facility
The purpose of the Credit Facility is to support NorthStar's continued growth by significantly strengthening the Company's balance sheet. The Company will use the proceeds of loans made pursuant to the Credit Facility: (i) to repay the aggregate
Key Terms of the Credit Facility
Loan Amount:
$43.4 million CADInterest Rate: SOFR +
9.35% , with a SOFR floor of4.40% Maturity Date: January 24, 2030
Amortization: Payment deferral for the first 30 months, followed by
2.5% per annum of the principal amount until the 42nd month ending after the closing date (paid quarterly), and, thereafter,5% per annum until the Maturity Date (paid quarterly).
The Credit Facility is secured by a first-priority lien on substantially all of the assets of NorthStar and its wholly-owned subsidiaries (the "NorthStar Guarantors"). The NorthStar Guarantors have provided a guarantee of the obligations of the Company under the Credit Agreement and the other loan documents.
A copy of the Credit Agreement will be available on NorthStar's SEDAR+ profile at www.sedarplus.ca.
Credit Support from Playtech
In addition to the guarantee by the NorthStar Guarantors, it is also a requirement of the Credit Agreement that Playtech, together with certain of its affiliates (the "Playtech Guarantors") guarantee the obligations of the Company under the Credit Agreement and the other loan documents (the "Playtech Guarantee"). In consideration of the Playtech Guarantors providing the Playtech Guarantee, and subject to receipt of all required regulatory approvals (including final approval of the TSX Venture Exchange), NorthStar has issued to Playtech 32,735,295 common share purchase warrants ("Bonus Warrants"), exercisable at a price of
Playtech is an insider of the Company and the issuance of the Bonus Warrants in connection with the provision of the Playtech Guarantee will be considered a "related party transaction" under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company intends to rely on the exemptions set forth in sections 5.5(b) and 5.7(a) of MI 61-101 from the valuation and minority shareholder approval requirements of MI 61-101 in respect of the issuance of the Bonus Warrants in connection with the provision of the Playtech Guarantee, as the Company is not listed on one of the specified markets in section 5.5(b) of MI 61-101 and the aggregate fair market value of the Bonus Warrants will be less than
A material change report in respect of, inter alia, the issuance of the Bonus Warrants to Playtech in connection with the provision of the Playtech Guarantee will be filed in accordance with MI 61-101. Such material change report was not filed at least 21 days before the issuance of the Bonus Warrants to Playtech in connection with the provision of the Playtech Guarantee as the Company wanted to close and implement these arrangements on an expedited basis for sound business reasons.
Advisors
NorthStar would like to express its gratitude to the advisory teams that facilitated this successful transaction. The Company was co-advised by XST Capital Group LLC and Roselli Advisory LLC, who provided financial advisory services to NorthStar, and Norton Rose Fulbright Canada LLP, who acted as legal counsel to NorthStar.
Kirkland & Ellis LLP and Goodmans LLP acted as legal counsels to Beach Point.
About NorthStar
NorthStar proudly owns and operates NorthStar Bets, a Canadian-born casino and sportsbook platform that delivers a premium, distinctly local gaming experience. Designed with high-stakes players in mind, NorthStar Bets Casino offers a curated selection of the most popular games, ensuring an elevated user experience. Our sportsbook stands out with its exclusive Sports Insights feature, seamlessly integrating betting guidance, stats, and scores, all tailored to meet the expectations of a premium audience.
As a Canadian company, NorthStar is uniquely positioned to cater to customers who seek a high-quality product and an exceptional level of personalized service, setting a new standard in the industry. NorthStar is committed to operating at the highest level of responsible gaming standards.
NorthStar is listed in Canada on the Toronto Stock Venture Exchange under the symbol BET and in the United States on the OTCQB under the symbol NSBBF. For more information on the company, please visit: www.northstargaming.ca
About Beach Point
Beach Point is a multi-strategy investment manager making credit, private equity, real estate and structured product investments. As of December 31, 2024, Beach Point manages approximately
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Cautionary Note Regarding Forward-Looking Information and Statements
This communication contains "forward-looking information" within the meaning of applicable securities laws in Canada ("forward-looking statements"), including without limitation, statements with respect to the following: the expected benefits of the Credit Facility, the use of proceeds of the Credit Facility, the ability of the Company to perform its obligations under the Credit Facility, and future value to be delivered as a result of the Credit Facility and the Company's ability to continue as a going concern (whether or not the Credit Facility is available in the short- and long-term). The foregoing is provided for the purpose of presenting information about management's current expectations and plans relating to the future and allowing investors and others to get a better understanding of the Company's anticipated financial position, results of operations, and operating environment. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. This forward-looking information is based on management's opinions, estimates and assumptions that, while considered by NorthStar to be appropriate and reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by such forward- looking information. Such factors include, among others, the following: risks related to the Company's business and financial position; risks associated with general economic conditions; adverse industry risks; future legislative and regulatory developments; the ability of the Company to implement its business strategies; and those factors discussed in greater detail under the "Risk Factors" section of the Company's most recent annual information form, which is available under NorthStar's profile on SEDAR+ at www.sedarplus.com. Many of these risks are beyond the Company's control.
If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking statements. Although the Company has attempted to identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other risk factors not presently known to the Company or that the Company presently believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking statements. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents NorthStar's expectations as of the date specified herein, and are subject to change after such date. However, the Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.
For further information:
Company Contact:
Corey Goodman
Chief Development Officer
647-530-2387
investorrelations@northstargaming.ca
www.northstargaming.ca
Investor Relations:
RB Milestone Group LLC (RBMG)
northstar@rbmilestone.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/238526
FAQ
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