NorthStar Gaming Secures $43.4 Million Long-Term Financing

NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") has announced a significant milestone in its growth journey, securing a $43.4 million CAD senior secured first lien term loan facility (the "Credit Facility") from Beach Point Capital Management LP ("Beach Point"). This financing, subject to final approval of the TSX Venture Exchange, represents a substantial boost to NorthStar's balance sheet and liquidity position, enabling the company to accelerate its growth initiatives and strengthen its strategic position in the online gaming sector.



The Credit Facility, which has a maturity date of January 24, 2030, provides NorthStar with access to additional capital to support its continued growth and strengthen its balance sheet. The loan proceeds will be used to repay existing debt, fund an interest reserve account, support working capital and general corporate purposes, and pay transaction costs related to the Credit Facility. This financing represents a significant vote of confidence in NorthStar's strategic vision and growth prospects from Beach Point, a leading investor in the gaming sector.

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 to repay the aggregate $9.5 million CAD principal amount (plus accrued interest) loaned to the Company by Playtech pursuant to unsecured, interest-bearing promissory notes dated April 25, 2024, September 13, 2024, and December 16, 2024. Additionally, the Company will fund an interest reserve account in respect of the Credit Facility in an amount equal to $7.0 million CAD, ensuring it has sufficient funds to meet its interest obligations under the Credit Facility. The remaining funds will be used for working capital and general corporate purposes, enabling NorthStar to invest in its operations, expand its services, and drive growth.

The Credit Facility has an interest rate of SOFR + 9.35%, with a SOFR floor of 4.40%, and a deferred payment structure for the first 30 months, followed by graduated amortization. This structure allows NorthStar to preserve cash in the early stages of the loan, which can be used for growth initiatives, while also providing a long-term financing solution that supports the company's strategic plans and growth trajectory.

In conclusion, NorthStar Gaming's $43.4 million financing represents a significant milestone in the company's growth journey, strengthening its balance sheet and enhancing its liquidity position. This financing, secured through a senior secured first lien term loan facility from Beach Point Capital Management, enables NorthStar to repay existing debt, fund an interest reserve account, and invest in its operations, ultimately driving growth and moving the company towards profitability.