Star Entertainment has entered into an exclusivity and process deed with alternative asset manager Salter Brothers about a A$940 million (US$592 million) refinancing proposal.
The casino and entertainment group lodged an announcement with the Australian Securities Exchange (ASX) to confirm a media report that it was negotiating the transaction with Salter Brothers.
Star referred to its ASX announcement on 7 March that it had received a refinancing offer which would provide sufficient liquidity to refinance all of its debt.
“(Star) confirms that the Company has entered into an exclusivity and process deed with Salter Brothers Capital relating to that Refinancing Proposal,” the company said in an ASX announcement.
This is the latest in a series of official statements by the cash-burning ASX-listed company which is suspended from trading because its directors have not approved its accounts due to concerns it may be unable to meet its liabilities.
Star had $301.8 million of interest bearing liabilities on 30 June 2024 and in December announced it had met the conditions to draw down the first $100 million of its new $200 million debt facility.
However in January it expressed doubt about its ability to meet the conditions to take the balance of the facility as its cash levels had plunged by $70 million in three months to $79 million on 31 December 2024.
In the last three days Star Entertainment has also:
- agreed to sell is half stake in the new Star Brisbane casino and resort to its joint venture partners Chow Tai Fook Enterprises and Far East Consortium International
- signed a $250 million bridge facility with King Street Capital Management to provide cash while it seeks liquidity for the long-term refinancing of senior debt
- disclosed a $650 million debt refinancing proposal from Oaktree Capital Management had not been finalised, and
- confirmed it had had received a $250 million recapitalisation offer from United States gaming giant Bally's Corporation, which would take a 50.1% stake through the conversion of fixed interest notes into equity if accepted.
