The Star Entertainment receives debt refinancing proposal from Oaktree
The proposal would be worth AU$650m in two debt facilities with a term of five years.
Key points:
– Several conditions would need to be sorted should the group go forward with this proposal
– The Star continues to explore different liquidity solutions
– Oaktree strategically acquired Interblock in 2022
The Star Entertainment has been offered a debt financing proposal from Oaktree Capital Management worth AU$650m (US$413.13m).
This proposal includes a commitment letter and term sheet, and would see Oaktree provide the AU$650m in two debt facilities with a term of five years.
The operator has made it clear there is no guarantee regarding this proposal going ahead, with The Star’s Board needing to reflect on it, while there are also a number of conditions that need to be met.
These include a comprehensive security package and intercreditor documentations.
The operator has stated that, should it go ahead with this specific proposal, it would need additional funding in the time period before it is implemented.
Good to know: Prior to being bought by Blackstone in 2022, Crown Resorts was subject to an offer from Oaktree
The Star Entertainment, as it has done on a number of occasions in recent weeks, underlined that it is exploring different liquidity solutions and that “there remains material uncertainty as to the group’s ability to continue as a going concern.”
This proposal offers a potential lifeline for the operator, which has faced financial pressures for some time now. This led it to implement safe harbour provisions to protect its directors from potential insolvency trading liability, and saw it divest The Star Sydney Event Centre and its assets to the theatre operator Foundation Theatres.
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