NorthStar Gaming enters CAD$43.4 million finance agreement with Beach Point and Playtech
Operator of NorthStar Bets, NorthStar Gaming, has secured a credit agreement worth up to CAD$43.4 million with Beach Point Capital Management, supported by Playtech.
The agreed-upon credit facility will mature in 2030 with a secured overnight financing rate +9.35%. The funds will repay existing loans, establish an interest reserve, cover transaction costs, and support general operations.
Playtech was heavily involved in the deal, with Playtech and its affiliates becoming guarantors for NorthStar Gaming. In return, NorthStar issued Playtech 32.7 million common share purchase warrants at CAD$0.055 per share.
NorthStar Gaming Chief Executive Officer Michael Moskowitz said, “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.
“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.”
Northstar Gaming confirmed it was looking for additional funding when it released its third quarter results for 2024, which revealed the company brought in CAD$6.8 million in revenue and a CAD$2.7 million gross margin.
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