Embattled Australian gaming operator The Star has announced that it has extended its refinancing possibility with Salter Brothers Capital to April 1st of 2025.
The proposal includes a potential to provide total debt capacity for the group of up to AU$940 million ($590 million) which would allow The Star sufficient liquidity to refinance all of the group’s existing debt.
In a Stock Exchange filing on Tuesday, The Star indicated that Salter Brothers Capital requested to extend the terms of the deed, noting that SBC has ‘advised that it is working towards making a binding offer with respect to the refinancing proposal’.
The Star notes that, if the refinancing proposal is accepted, it would be followed by a further period of exclusivity to enable preparation of documentation and finalization of conditions.
This comes amongst reports that The Stars largest shareholder – billionaire pokie businessman Bruce Mathieson – is backing a proposal from American casino giant Bally’s and could potentially contribute up to AU$50 million ($31.4 million) in capital if the deal is finalized with the American group.
Bally’s had previously proposed to inject capital into the struggling group in exchange for majority shareholding. At the time, Bally’s was proposing about AU$250 million ($158 million) for the stake in the casino operator.
The move also comes after The Star’s joint venture partners in Queen’s Wharf Brisbane – Hong Kong-listed Far East Development Corporation and Chow Tai Fook – aim to assume ownership of The Star’s 50 percent stake in Queen’s Wharf Brisbane.
The move to divest their stake in Queen’s Wharf Brisbane would significantly lighten the load of The Star in regards to debt while consolidating its stake in its Gold Coast assets bringing them to 100 percent ownership.
The divestment would also provide a transitionary period for The Star to relinquish its casino license for Queen’s Wharf Brisbane – ideally transitioning to its joint venture partners. Without such a casino license transition, the buyout would not make sense, given how essential the casino is to the multi-billion dollar property.
