Australia’s Star Entertainment Group has entered into a binding commitment letter with funds associated with US-based WhiteHawk Capital Partners to refinance the group’s debt.
In a Monday morning filing, Star revealed that the letter provides for a refinance of existing group debt in full and incremental liquidity to retain sufficient liquidity for the ordinary course of operations.
It is, however, contingent on the satisfaction of conditions precedent including entry into long form finance documentation, receipt of required regulatory approvals, completion of the disposal of the group’s interest in Destination Brisbane Consortium (DBC) and other customary financial close deliverables, it said.
According to Star, the key terms of the refinancing include a three-year term, quantum of US$390 million; a minimum liquidity covenant of AU$50 million for the first 12 months after financial close, increasing to AU$75 million between 12 months and 18 months and AU$100 million thereafter; and various quarterly EBITDA and other covenants.
“The Star is working expeditiously to complete the refinancing by no later than 15 May 2026 in order to satisfy the conditions of the waiver given on 27 February 2026 to the Group by its existing senior lenders,” the company stated.
Star had been required to secure a binding agreement by 31 March to avoid breaching the terms of its existing loan.
While the refinancing package will, if fully finalized, alleviate many liquidity concerns, Star is still awaiting a Federal Court ruling on civil action brought by Australia’s financial crimes watchdog AUSTRAC for alleged breaches of AML laws that could result in a fine in the hundreds of millions of dollars. Rival casino operator Crown Resorts reached a AU$450 million settlement with AUSTRAC on similar allegations in 2023.
Soo Kim, whose company Bally’s Corp purchased a 38% stake in Star late last year, has previously stated that a fine of more than AU$100 million (US$70 million) would place Star’s future in peril.
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