The Star completes sale of Sheraton Grand Mirage Resort Gold Coast
The sale was completed on Friday.
Australia.- The Star Entertainment Group has announced the completion of the sale of the Sheraton Grand Mirage Resort Gold Coast. Australian Wattle Development Pty, in which The Star holds a 50 per cent stake, sold the resort to entities owned by the Karedis and Laundy families for AU$192m (US$125.03m). According to a company filing, the transaction was completed on Friday (November 3).
The Star Entertainment Group anticipates net proceeds of approximately AU$60m (US$39.07m) from the sale. The company had previously stated that it was accelerating its plans “to refinance its existing debt funding arrangements, with a focus on improving the group’s liquidity position and separately increasing covenant headroom in light of the Group’s current earnings environment.”
In September, it announced a series of capital structure initiatives aimed at improving its funding arrangements. The strategy includes an equity raise of AU$750m, comprising an AU$589m 1 for 1.65 pro rata accelerated non-renounceable entitlement offer and an AU$161m institutional placement.
It has also arranged new debt facilities totalling AU$450m provided by Barclays Bank and Westpac Banking Corporation. These comprise an AU$150m four-year revolving credit facility and an AU$300m four-year underwritten term loan.
