This article is from the Australian Property Journal archive
Embattled casino operator Star Entertainment has entered into an exclusivity and process deed with specialist property credit manager Salter Brothers Capital to refinance its entire debt capacity.
Star has received a debt refinancing proposal from Salter Brothers, offering total debt capacity of up to $940 million, which would allow the company to refinance its existing debt.
If agreed, the new debt agreement will give Star more breathing room.
It has been reported that Star was paying an interest rate of 16% on its current debt facility.
The Salter Brothers revelation comes just a day after US casino operator Bally’s Corporation, backed by hedge fund manager Soo Kim, made a proposal to raise $250m for Star in exchange for a 50.1% stake in the company.
Star recently won an 11th hour reprieve after selling its 50% stake in Brisbane’s Queen’s Wharf precinct for $50 million to its Hong Kong-based partners Far East Consortium and Chow Tai Fook.
The sale prevented the company from calling administrators last weekend.
The ASX suspended Star from trading earlier this week when it failed to lodge its financial report on time.
Star bought more time in January when it sold the Star Sydney Event Centre and other additional spaces within The Star Sydney complex to Foundation Theatres for $60 million, however those funds are held in escrow.
The company had $78 million left as at December 31 2024, after spending more than $100 million in the three months prior.