The Star Entertainment Group has confirmed that its largest shareholder, Investment Holdings Pty Ltd—controlled by the Mathieson family—will subscribe for AU$100 million ($60.5 million) as part of the previously announced AU$300 million ($180.8 million) investment.
On Monday, The Star revealed a binding term sheet with Bally’s Corporation for a multi-tranche convertible note and subordinated debt instrument totaling AU$300 million ($180.8 million). This investment is intended to bolster The Star’s financial position.
In a subsequent announcement on Tuesday, The Star disclosed a commitment letter with Investment Holdings. Under this agreement, Investment Holdings will contribute AU$100 million ($60.5 million) to the capital raise.
As a result, Bally’s investment will be adjusted to AU$200 million ($121 million), while the total principal value of the transaction remains unchanged at AU$300 million ($180.8 million).
As previously reported by AGB, a proposed AU$940 million ($593 million) refinancing plan with Salter Brothers Capital (SBC) collapsed fell through last week, leaving Bally’s proposal as one of The Star’s last remaining options.
According to the agreement, Bally’s AU$300 million funding will be delivered in two parts. The first AU$100 million is expected by April 9th, 2025. The remaining AU$200 million is subject to shareholder and regulatory approvals, with payment timelines potentially extending to October 7th, 2025, depending on the progress of those approvals.
This includes convertible notes representing 9.71 percent and 4.85 percent of The Star’s pre-issue capital in the initial tranche, alongside subordinated debt.
