Key points:
- The Star extends exclusivity with Salter Brothers Capital to 1 April 2025
- Proposed deal may provide up to AU$940m (US$590m) in debt support
- Move comes as the group tries to manage rising debt and cash flow concerns
The Star Entertainment Group has given investment firm Salter Brothers Capital more time to finalise its refinancing offer, with the two sides now working under an extended exclusivity arrangement that runs until 1 April.
The potential deal, first mentioned earlier this month, could give The Star access to as much as AU$940m in new debt capacity. That would be enough to cover the group’s existing borrowings, which have been under the spotlight for some time now.
Salter Brothers is aiming to put forward a binding offer by 31 March. If that happens and The Star agrees to the terms, the two companies would then move into another period to sort out the legal paperwork and any remaining conditions.
At the end of last year, The Star's available cash reportedly dropped to AU$79m and it has been looking at various ways to bring in funds. That has included selling off its 50% share in the Queen’s Wharf Brisbane development for AU$53m.
Other potential backers have come forward too. US-based Bally’s Corporation floated a deal involving convertible notes that could see them take majority control, while firms like Oaktree and King Street have put up funding offers, though with stricter terms.
