Australian casino operator The Star Entertainment Group Ltd has announced that its lenders have signed a “commitment letter” for a new debt facility of up to AUD200 million (US$136.7 million) in two-tranches.
The new facility “will become effective upon completion of long-form documentation and satisfaction of various conditions precedent,” stated the casino firm in a Wednesday filing.
The deal comprises two tranches of AUD100 million each. The first tranche is likely to be available to be drawn, subject to conditions, “from the end of October 2024 through to 20 December 2024,” noted the company.
The second tranche is likely to become available for drawing “from the end of December 2024,” said the firm. It has a “four-month availability period following the drawing of the first tranche,” it added.
The Star Entertainment runs its flagship casino in Sydney, in New South Wales. It also holds gaming licences in the state of Queensland, where it launched on August 29 The Star Brisbane (pictured), a new casino resort that is part of the AUD3.6-billion Queen’s Wharf Brisbane.
According to the filing, the group’s lenders “have agreed to provide covenant waivers for the next two testing dates,” in September and December, respectively.
The company also said that its existing AUD450-million facility “has been reduced to AUD334 million which is fully drawn”.
The all-in coupon for the new facility is 13.50 percent per annum, and the existing AUD300 million term facility “has been repriced to this level,” remarked the casino operator.
The maturity date for the new facility is due in December 2027. The Star Entertainment will also retain up to AUD34-million of bank guarantees under the existing revolving credit facility.
Earlier this month, the casino firm said it was working with “various” financial advisers to review its financial and liquidity position, as well to finalise its annual results for the financial year ended June 30.
The Star Entertainment, which remains under scrutiny from regulators over corporate cultural and governance issues, expects to release today (Thursday, September 26) its unaudited accounts for the financial period ended June 30.
Trading in the company’s shares in the Australian Securities Exchange was halted on August 30, pending the financial-year results.
