The Star Finalizes Refinancing Agreement with WhiteHawk

(AsiaGameHub) –   The Star Entertainment Group has advanced its debt refinancing efforts with WhiteHawk Capital Partners following the timely delivery of its commitment letter.

The Australian casino operator has outlined the terms of the agreement as it proceeds with refinancing its current debt completely while securing additional liquidity to maintain adequate funds for regular business operations.

The three-year refinancing package comprises:

• A principal amount of US$390m (approximately AUS$550m at current exchange rates).
• An annual interest rate based on Term SOFR plus a margin materially consistent with the company’s recent facility agreements.
• Quarterly amortisation beginning on 31 March 2027.
• A minimum liquidity covenant of A$50m for the first 12 months following financial close.
• Increasing to A$75m between 12 and 18 months, and to A$100m thereafter.
• A minimum asset coverage ratio commencing from 31 December 2026.
• A minimum EBITDA covenant commencing from 31 March 2027.
• An interest reserve account funded with the first 12 months of interest.
• Customary covenants, representations, events of default, and review events, including customary financial covenants and reporting obligations.

The Star must finalize the refinancing by 15 May 2026 to prevent default, though the operator has maintained a preliminary agreement with WhiteHawk since February while assessing its organizational structure and strategic direction.

The deal’s execution is contingent upon meeting various conditions precedent, such as executing comprehensive finance documentation, obtaining necessary regulatory clearances, finalizing the sale of The Star’s interest in the Destination Brisbane Consortium (DBC), and fulfilling other standard closing requirements.

This agreement comes after The Star reported its H1 FY26 results in early March, with the operator showing optimism despite a volatile end to 2025 that resulted in normalized net revenue of A$585m (H1 FY25: $650m), along with a significant net loss of over A$75m.

The period also marked the first financial reporting under new leadership, following the completion of the A$300m strategic investment by Bally’s Corporation and Investment Holdings late last year.

With Bruce Mathieson Jnr as Group Chief Executive Officer, The Star has implemented changes to its operational and marketing approach, launched customer-centric initiatives, and introduced additional cost-reduction measures.

Mathieson Jnr stated: “We are streamlining our corporate headquarters, with key support functions to be handled at the property level in Sydney, Gold Coast, and Brisbane. These modifications will bolster our financial standing to ensure sustainable long-term success.

“We remain focused on executing suitable cost-reduction programs while developing and rolling out strategies to draw customers to our venues. We are dedicated to following a transparent, pragmatic, and sustainable approach that guarantees our remediation plan meets the required standards, fostering consistency, integration, and verifiable maturity throughout the organization.

“Our properties hold tremendous potential, and we are determined to evolve The Star into leading entertainment destinations.”