NorthStar Gaming enters into credit agreement with Beach Point and Playtech
Beach Point will provide NorthStar with a loan of $30m, which will go towards strengthening the company’s balance sheet and accelerating its growth initiatives.
Key Points
- Playtech and a group of its subsidiaries agreed to provide credit support for certain obligations under the credit facility
- The credit facility is secured by a first-priority lien on substantially all of the assets of NorthStar and its wholly-owned subsidiaries
NorthStar Gaming has entered into a credit agreement with both Beach Point Capital and Playtech to gain CA$43.4m (US$30m) that will be used to strengthen the company’s balance sheet and accelerate its growth initiatives.
The loan will be made available through a Beach Point credit facility, while Playtech and a group of its subsidiaries agreed to provide credit support for certain obligations under the credit facility.
“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,” NorthStar Chairman and CEO Michael Moskowitz said.
“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.”
The loan includes payment deferrals for the first 30 months, followed by 2.5% per annum of the principal amount until the 42nd month ending after the closing date and 5% per annum until the maturity date.
Good to know: NorthStar announced that it received $3.5m in short-term financing from Playtech on December 17, 2024
“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,” Beach Point Managing Director Gabriel Fineberg said.
“Likewise, we value the partnership with Playtech, who are contributing their leading technology, global reach and strategic vision towards NorthStar’s continued success.”
The credit facility is secured by a first-priority lien on substantially all of the assets of NorthStar and its wholly owned subsidiaries. The loan will also be used to fund an interest reserve account for working capital and general corporate purposes.
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