Star reveals thriller lender behind $940m debt | Australian Markets
A new financing deal for Star Leisure Group might be enough to cowl the beleaguered on line casino operator’s sizeable money owed.
Star confirmed it had entered into an exclusivity and course of deed with Salter Brothers Capital, after hinting on the $940 million refinancing proposal earlier in March.
“(The Star) received a refinancing proposal which has the potential to provide total debt capacity for the group of $940 million,” Star’s board wrote to shareholders.
“Which, if finalised, would provide the Star with sufficient liquidity to refinance all of the Group’s existing debt.”
Star’s board supplied no additional particulars of the deal, which was nonetheless within the works.
Star’s shares have been in a trading freeze for more than a week after the on line casino operator didn’t log out on a financial assertion, because it continued to hunt options to refinance more than $400 million in money owed.
The group’s fortunes have been plagued in recent times by money laundering scandals, licensing complications and sliding revenues.
Regardless of its precarious financial scenario, Star has been bombarded with refinancing presents and has a quantity of choices on the desk.
Over the weekend, Star struck a $53 million deal to dump its stake within the Queen’s Wharf Brisbane leisure precinct, a project that has confronted its own short-term liquidity challenges.
The deal absolved Star of its share of the $1.6 billon debt accrued by the project.
US on line casino giant Bally’s on Monday supplied to underwrite a $250 million capital raise in return for a controlling, 50.1 per cent stake within the Star.
Bally’s owns and operates 19 casinos within the US and has a monitor document in turning round struggling operations.
Star’s board has stated it could contemplate the unsolicited offer, during which Bally’s famous it was not a lone suitor.
“While we understand the rationale for Star’s recently announced transactions, we believe that our proposal offers Star and its stakeholders far greater value and operational flexibility, as well as the upside from retaining Star’s current projects and other assets,” Bally’s chair Soo Kim wrote.
Earlier in March, Star signed a $250 million senior secured bridge facility with King Road Capital Administration.
The trading freeze on Star shares is more likely to prolong for at the least one other week because the company’s board and government group mull choices for the company, which employs more than 8000 employees.
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