The Star Entertainment Group secures US$129.2m debt facility

The new loan comprises two tranches of AU$100m (US$65.1m) each.

Australia.- The Star Entertainment Group has announced that it has executed a commitment letter for a new debt facility, which comprises AU$200m (US$129.2m) in two tranches of AU$100m (US$65.1m) each.

The company said it is currently working with lenders to meet the conditions to draw down the first tranche, with an availability period up to December 20. It confirmed that lenders have agreed to provide a covenant waiver for the next quarterly testing date, December 31.

The casino operator posted revenue of AU$351m (US$230.85m) for the first quarter of its financial year, down 18 per cent year-on-year and 11 per cent sequentially. Earnings before interest, taxes, depreciation and amortisation (EBITDA) were negative AU$18m (US$11.84m) compared to positive AU$23m (US$15.1m) in the previous quarter. The company cited a “challenging operating environment and the continued implementation of mandatory carded play and cash limits.”

The Star Sydney revenue was AU$186m (US$122.23m), down 11 per cent sequentially and 16 per cent in year-on-year terms. EBITDA was negative AU$21m (US$13.8m) compared to positive AU$22m (US$14.47m) in the first quarter of the last financial year. The casino operator was affected by a AU$4.4m (US$2.9m) impact from system outages in July.

The Star Gold Coast revenue was AU$108m (US$71m), down 9 per cent year-on-year but up 6 per cent compared to the previous quarter. EBITDA was positive at AU$7m (US$4.6m) but down 33 per cent from the previous quarter and down 70 per cent yearly.

Treasury Brisbane posted revenue of AU$53m (US$38.86m), with EBITDA of AU$2m (US$1.32m). The venue closed on August 25. The Star Brisbane, which commenced operations on August 29, brought in AU$4m (US$2.63m), but EBITDA was negative AU$7m (US$4.6m).