On June 30, 2021, the Great Canadian Gaming Corporation provided an update on its latest under activities. The company announced the closing of a private offering by Raptor Acquisition Corp. As, the company closes in on the affiliate of the latter of US$350 million aggregate principal amount of its 4.875% senior secured notes due 2026.
Great Canadian Gaming Corporation is an Ontario-based firm that operates 26 gaming properties and hospitality complexes in Canada. The founded in 1982 corporation oversees casino properties in Ontario, British Columbia, New Brunswick, and Nova Scotia. Also, the company supports over 1,400 local charitable and non-profit organizations with the help of its PROUD program, as revenue is used to finance healthcare, education, and social services.
Acquisition Update
The gaming conglomerate most recently informed of the closing of a private offering by Raptor Acquisition Corp. and an affiliate of RAC worth over US$350 million aggregate principal amount of its 4.875% senior secured notes due 2026. The proceeds of which were positioned and secured in escrow until the meeting of the specified conditions precedent.
This also contains the fulfillment or relinquishment of all conditions precedent to the consummation of the previously revealed plan of arrangement under section 288 of the Business Corporation Act of British Columbia. RAC, which is an affiliate of funds managed by affiliates of Apollo Global Management will receive all the issued outstanding common shares of Great Canadian Gaming Corporation.
The pursuant will acquire the shares at a price of CA$45 in cash. Then after the release from escrow the gaming leader projects that the net proceeds of the deal be used for partially funding the Arrangement. This includes obtaining numerous regulatory approvals and satisfaction with the customary closing details. So far, the company has managed to receive approval from Competition Act, Investment Canada Act. and Canadian Pari-Mutuel Agency.
Interim CEO of the gaming conglomerate, Terrance Doyle, provided an update on the acquisition. Mr. Doyle stated that significant progress has been made to complete the Arrangement. He also noted that the gaming company will continue to work diligently with RAC to close the Arrangement as soon as possible.
Property Reopening
The gaming corporation has endured difficult last 15 months as most of its casino properties in the country were closed down due to the unprecedented situation. However, as B.C. enters Stage 3 of the restart plan, the company was allowed to restart operations at its casinos for the first time in almost 16 months. Starting from July 1, patrons are welcomed back at River Rock Casino and Resort, Hard Rock Casino Vancouver, Elements Casino Victoria, Elements Casino Surrey, Casino Nanaimo, Elements Casino Chilliwack, Hastings Racecourse, Chances Maple Ridge, and Chances Dawson Creek.
Controversial Dismissal
Recently, the gaming conglomerate has been involved in a controversy as former staff members of its Casino Nanaimo have taken the company to court. The workers claimed that the company has handled their contracts situation poorly and they have filed individual class-action lawsuits for wrongful dismissal. According to the claim, workers had their benefits cut out and they did not receive banked vacation payments.
Source: “Great Canadian Announces Closing of Offering of Senior Secured Notes by, and Provides Update on Plan of Arrangement with, an Affiliate of Apollo Funds”, Cision, June 30, 2021
