Gateway Casinos, based in British Columbia, announced last month that it will launch an initial public offering, filing a preliminary prospectus with Canadian financial authorities. Gateway operates 12 properties in British Columbia and Alberta, totaling more than 400,000 square feet of casino space, 5,500 slot machines, 41 poker tables and more than 575 bingo seats.
The company is only five years away from a $1.4 billion private equity buyout financed mainly with high levels of debt. The company was forced to restructure during the depths of the economic crisis two years later. Newt Glassman, the head of distressed debt firm Catalyst Capital, has been in control of the company and said the money raised by the IPO would be used to reduce debt and to complete Gateway’s refinancing process.
The company has performed well during this period, boosting revenues from $2.3 billion to $2.7 billion over the past five years. Company officials have chipped away at the debt, recently announcing that $77 million will be used to repay term loans and $60 million to retire some other notes.