Australia’s Star Entertainment Group said Thursday it has reached an agreement on terms with WhiteHawk Capital Partners around a proposed refinancing of the group’s debt plus incremental liquidity to facilitate its turnaround plan under new management.
A little over two months after US casino operator Bally’s Corp and local shareholder Investment Holdings Pty Ltd assumed a combined 61% stake in the company, Star revealed some details of the refinancing term sheet. However, it noted that the executed term sheet is non-binding and may not lead to a definitive credit agreement, with Star and WhiteHawk working towards a binding commitment by the end of March 2026, aiming to consummate the refinancing proposal by mid-May.
Star stated that it believes that it can complete the refinancing proposal, including the execution of long form documentation, confirmatory due diligence and satisfaction of other customary conditions. A looming AUSTRAC fine for historical AML breaches is not a condition to such completion, the company added.
Star also revealed it is separately engaging with its existing lenders on covenant waivers for the December period to allow time for the refinancing to be implemented but said there is no assurance this will lead to a successful waiver of covenants from those lenders.
The company recently announced that it had returned to EBITDA profit in the three months to 31 December 2025 – the first time it has achieved a positive EBITDA result in two years.
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