Is The Star Entertainment seeking an AU$430m loan?
The operator is reportedly in talks with two potential financers over a large loan with a cheaper debt package.
Key points:
– Star Entertainment is seemingly exploring additional loan options
– The operator is in reported talks with the Mathieson family for an AU$430m loan
– Star has also been granted recent extensions from previous lenders
Operator The Star Entertainment is reportedly exploring an AU$430m (US$284m) loan option with a larger and more cost-effective debt package from two potential financers.
It is no secret that one of Australia’s largest casino operators has been struggling with financial woes in recent times, with Star’s FY25 report highlighting a 29.2% year-on-year drop in revenue – compounding an already troubling net debt figure. Nevertheless, thanks to an AU$300m cash injection from Bally’s Corporation, Star Entertainment did manage to reduce its net loss during its FY25 period by over AU$1.2bn year-on-year, an achievement the operator is now seemingly looking to build upon further.
Indeed, according to the Australian Financial Review, Star Entertainment is in talks with both an offshore consortium and a local group including its own largest shareholder – the Mathieson family – over yet another AU$430m loan. However, Star already currently owes previous lenders, which have not yet been included in these most recent discussions, that exact figure.
The lenders – including the likes of Macquarie and Deutsche Bank – have consistently granted repayment extensions to the operator, with Star recently confirming an additional six months of relief until February. Now, this latest action could yet see the Mathieson family which previously aided the Bally’s deal invest further into Star’s debt repayment campaign.
Good to know: According to its audited FY25 results, Star’s net liabilities are AU$426.3m and its total assets are $341.4m
This latest update follows the operator’s decision to offload its 50% stake in Destination Brisbane Consortium last month, after also previously extending negotiations pertaining to this move in July.
Elsewhere, it was announced last week that Star’s Sydney casino licence suspension had been prolonged by the NSW Independent Casino Commission – with the casino location set to remain operational under external oversight until Q2 2026, while the group works through its remediation plan.
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