Completion of $10 Million Heavily Oversubscribed Placement
Executive Commentary
“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,” said Michael Moskowitz, Chair and CEO of NorthStar. “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.”
“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. Likewise, we value the partnership with Playtech, who are contributing their leading technology, global reach, and strategic vision towards NorthStar’s continued success,” said Gabriel Fineberg, Managing Director at Beach Point.
Purpose of the Credit Facility
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: (i) 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; (ii) to fund an interest reserve account in respect of the Credit Facility in an amount equal to $7,000,000 CAD; (iii) for working capital and general corporate purposes; and (iv) to pay transaction costs in connection with the Credit Facility.
Key Terms of the Credit Facility
- Loan Amount: $43.4 million CAD
- Interest Rate: SOFR + 9.35%, with a SOFR floor of 4.40%
- Maturity Date: January 24, 2030
- Amortization: Payment deferral for the first 30 months, followed by 2.5% per annum of the principal amount until the 42nd month ending after the closing date (paid quarterly), and, thereafter, 5% per annum until the Maturity Date (paid quarterly).
The Credit Facility is secured by a first-priority lien on substantially all of the assets of NorthStar and its wholly-owned subsidiaries (the “NorthStar Guarantors”). The NorthStar Guarantors have provided a guarantee of the obligations of the Company under the Credit Agreement and the other loan documents.
A copy of the Credit Agreement will be available on NorthStar’s SEDAR+ profile at www.sedarplus.ca.
Credit Support from Playtech
In addition to the guarantee by the NorthStar Guarantors, it is also a requirement of the Credit Agreement that Playtech, together with certain of its affiliates (the “Playtech Guarantors”) guarantee the obligations of the Company under the Credit…
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