New World Gaming credit facility expected to launch in late May

By Sara Rosenberg

New York, April 30 - New World Gaming Partners Ltd., a joint venture owned by Publishing and Broadcasting Ltd. and Macquarie Bank Ltd., is anticipated to hold a bank meeting during the late May timeframe, according to a market source.

Bear Stearns and Royal Bank of Canada are the lead banks on the deal, with Bear Stearns the left lead and administrative agent.

Proceeds will be used to help fund the acquisition of Gateway Casinos Income Fund at a price of C$25.26 per unit in cash and Gateway's 5.35% convertible debentures. New World Gaming will also acquire the assets of Gateway Casinos Inc. All of these transactions have an aggregate enterprise value of C$1.37 billion.

The transaction is expected to close late second quarter or early third quarter, subject to regulatory approvals, including from the BC Gaming Policy and Enforcement Branch, the British Columbia Lottery Corp., and the Alberta Gaming and Liquor Commission as well as receipt of certain third-party consents.

Gateway Casinos is a Burnaby, B.C., casino operator.

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