Oaktree Capital offers Star Entertainment refinancing deal
Oaktree Capital Management has proposed a five-year refinancing package for Star Entertainment Group's two debt facilities, However, Star cautioned that the proposal is contingent on several factors and its realisation is uncertain.
The proposed transaction hinges on a comprehensive security package, regulatory approval of inter-creditor documentation, satisfactory due diligence, and agreement from existing lenders to settle and refinance under terms acceptable to Oaktree. Star also emphasised the need for additional funding before the completion of any potential deal.
The gaming and entertainment company has faced challenges in securing new capital amid declining gaming revenues. While exploring various options to improve liquidity, Star's capacity to raise A$150 million in subordinated debt remains limited, a key requirement for accessing an additional A$100 million loan.
Last week, Star disclosed receiving non-binding offers from Hong Kong-based partners, including Chow Tai Fook Enterprises and Far East Consortium, for a 50% stake in its Brisbane resort complex. These offers, however, were rejected due to insufficient valuation of the assets.
Billionaire businessman Bruce Mathieson, Star's largest shareholder with approximately 10% ownership, holds an estimated net worth of $1.1 billion, per Forbes' real-time data. Mathieson's business interests include a joint venture with Woolworths Group, Australian Liquor and Hospitality, and a minority stake in the publicly traded Endeavour Group.
Jonathan Jackson, 18th February 2025
