The Star secures US$157.8m bridge loan
The company has also received a debt refinancing proposal from a potential lender.
Australia.- The Star Entertainment Group has announced that it has signed a financing commitment letter for a senior secured AU$250m (US$157.8m) bridge facility with funds managed by King Street Capital Management.
The company said the facility will provide additional liquidity while it seeks to implement a longer-term refinancing of its senior debt. The bridge facility is available to be drawn until April 29.
The agreement includes an annual interest rate of 15 per cent, a six-month maturity, which could be extended to nine months under specific conditions, and a minimum liquidity covenant of AU$10m. The facility remains subject to regulatory approvals and other conditions.
Refinancing proposal
The company has also announced that it has received a debt refinancing proposal from a potential lender. If finalised, the deal would enable the casino operator to refinance all existing corporate debt through an AU$750m loan, with the option to capitalise interest for a period, potentially increasing the total capacity to AU$940m. The proposal carries a five-year term and requires a minimum liquidity covenant of AU$50m.
The statement reads: “The lender has undertaken due diligence enquiries and engaged in preliminary discussions with governments and regulators in relation to the refinancing proposal. The company has entered into an exclusivity and process deed with the lender to enable the refinancing proposal to be progressed, including providing the lender with the ability to complete outstanding due diligence enquiries by March 18 (subject to extension for a further period of seven days).
“The parties have agreed to work towards a binding offer of finance with respect to the Refinancing Proposal which, if accepted by The Star, would be followed by a further period of exclusivity to enable preparation of long-form facility documentation and finalisation of conditions precedent.”
The refinancing proposal is non-binding and subject to various conditions. The Star said that there is no certainty it will proceed.
