Australia’s Star Entertainment Group said Thursday it has entered into a binding credit facility agreement with funds associated WhiteHawk Capital Partners, effectively locking in refinancing in full of the group’s debt.
This follows the signing of a binding commitment letter between the parties in March.
Under the terms of the credit facility agreement, key features of the refinancing include US$390 million (AU$540 million at current exchange rates) over a three-year term, with annual interest rate “materially consistent” with the interest rate under the company’s previous credit facility agreements.
It also includes quarterly amortization commencing from 31 March 2027, minimum liquidity covenant of AU$50 million (US$36 million) for the first 12 months after financial close, increasing to AU$75 million (US$54 million) between 12 months and 18 months and AU$100 million (US$72 million) thereafter, and minimum asset coverage ratio of 1.40x.
Star said that, following completion of the refinancing and net of the interest reserve account required to be funded under the facility, the group will have additional liquidity of approximately AU$130 million (US$94 million).
This liquidity is intended to support the Star’s ongoing operational needs and the execution of its cost-out and strategic initiatives, the company explained.
Star also issued a corporate update on Thursday in which it reiterated its core short-term objectives as being to decentralize operations to promote greater accountability at property level, and to implement further technology enhancements to shape safer gambling behaviors and ensure appropriate ongoing monitoring.
“The reinstatement of The Star Sydney’s casino license and withdrawal by the Queensland Government of the deferred suspension of The Star Gold Coast’s casino license remain subject to ongoing discussion with the respective regulators and an update is expected later this calendar year,” Star said.
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