The operator has formally requested a trading halt in its ordinary shares, effective from today. The halt is in accordance with ASX Listing Rule 17.1 and is anticipated to remain in effect until the commencement of normal trading on Wednesday, 27 September 2023.
Simultaneously, The Star Entertainment Group has unveiled a multifaceted capital restructuring and refinancing strategy, which the company says is designed to optimise its capital structure and enhance financial flexibility.
Key capital structure initiatives
The company is targeting a substantial equity infusion of $750m through a 1 for 1.65 pro-rata accelerated non-renounceable entitlement offer. The shareholders will have the opportunity to buy new shares at a rate of 1 new share for every 1.65 shares they already own. This offer will raise about $589m. Additionally, the company will also offer new shares to institutional investors, aiming to raise approximately $161m.
Furthermore, to bolster financial resources, The Star Entertainment Group is securing $450m in new debt facilities from Barclays Bank PLC and Westpac Banking Corporation, consisting of a $150m four-year revolving credit facility and a $300m four-year underwritten term loan.
Commenting on these initiatives, Group CEO and Managing Director Robbie Cooke stated: “Today’s announcement is a key milestone in the renewal of The Star. With an optimised capital structure, strengthened balance sheet and enhanced flexibility, we have a strong platform from which to deliver on our renewal program and strategic priorities.”
Equity Raising
According to the company’s recent release, the Equity Raising involves a pro-rata accelerated non-renounceable entitlement offer of new fully paid ordinary shares (New Shares) and an institutional placement.
New Shares issued will rank equally with all existing fully paid ordinary shares on issue. The Equity Raising Price for the Entitlement Offer is set at $0.60 per New Share.
Institutional and retail shareholders will have the opportunity to participate in the equity raising based on the designated entitlement offer and placement mechanisms.
