Star Entertainment Group confirmed Monday it had entered into a binding term sheet with US casino operator Bally’s Corp to take control of the company as part of a US$300 million (US$180 million) deal.
The term sheet, comprising a multi-tranche convertible note and subordinated debt instrument, will see Bally’s assume convertible notes convertible to 56.7% of Star’s issued share capital.
The last-ditch effort to avoid falling into administration will see Star receive AU$100 million on or before this Wednesday 9 April – allowing it to reach its short-term obligations, plus another AU$200 million wither following a shareholder vote and receiving regulatory approvals, or AU$100 million after a shareholder vote and the remaining AU$100 million after regulatory approvals.
With the deal now done (subject to regulatory and shareholder approval), Bally’s Corp Chairman Soo Kim talks to Inside Asian Gaming Vice Chairman and CEO Andrew W Scott about how the deal was done and where the company goes from here.
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