The Star Entertainment Group’s refinancing lifeline via WhiteHawk Capital Partners has officially closed, according to a Monday announcement by the US-based private credit investment manager.
The release confirmed “the closing of a US$390 million senior secured financing for The Start Entertainment Group Limited” which “provides The Star with additional liquidity and refinances certain existing indebtedness.”
Charlie Diao, Group CFO of The Star, said, “After the AU$300 million (US$215 million) equity investments from Bally’s Corporation and Investment Holdings Ltd. to right the ship, it was critical to partner with a single-source capital provider to stabilize our balance sheet.”
The executive further stated that The Star welcomes WhiteHawk’s “commitment to help us deliver a full refinancing under urgent and challenging circumstances.”
The Star entered into a binding commitment letter with WhiteHawk in late March, contingent on the satisfaction of conditions 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.
The sale of The Star’s 50% stake in the AU$3.6 billion (US$2.58 billion) Queen’s Wharf Brisbane to Hong Kong partners Chow Tai Fook Enterprises (CTFE) and Far East Consortium International Limited (FEC) was concluded on 31 March – with The Star set to receive the joint venture partners’ two-thirds interest in Destination Gold Coast Consortium, which oversees The Star Gold Coast, as part of the deal in 2H26.
The deal between The Star and WhiteHawk encompasses a three-year term for the US$390 million refinancing, a minimum liquidity covenant of AU$50 million (US$36 million) for the first 12 months after financial close – increasing to AU$75 million (US$53.83 million) between 12 months and 18 months and AU$100 million (US$71.8 million) thereafter – and various quarterly EBITDA and other covenants.
Speaking on the closure of the deal, WhiteHawk’s Managing Director Alex Zuckerman said, “The transaction highlights WhiteHawk’s ability to provide speed, certainty and flexible structuring in complex, highly regulated situations. Our team worked closely with the company and its stakeholders to deliver a comprehensive refinancing solution tailored to The Star’s operational and capital structure needs.”
The announcement comes a day after the NSW casino regulator fined The Star Sydney AU$10 million (US$7.2 million) fine for historical financial crime and responsible gaming risk failures following an investigation by Liquor and Gaming NSW.
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