Bruce Mathieson to invest US$60m amid The Star refinancing deal with Bally’s
The company said the subscription by Investment Holdings is on the same terms as Bally’s investment.
Australia.- The Star Entertainment Group has announced that its largest shareholder, the Mathieson family’s Investment Holdings, has subscribed for AU$100m (US$60.5m) as part of its new AU$300m financing agreement with Bally’s Corporation. The move will reduce the investment from Bally’s to AU$200m (US$121m), while the principal value of the transaction remains at AU$300m.
The casino operator said the subscription by Investment Holdings is on the same terms as the Bally’s investment. If the deal is approved, it would result in the conversion of notes representing 56.7 per cent of The Star’s issued capital on a fully diluted basis. The notes will be priced at 8 cents per share, subject to standard adjustments.
The coupon rate stands at 9 per cent per annum, compounding and payable quarterly in arrears. The maturity date is July 2, 2029.
In another filing, the casino operator has announced that it has completed the sale of The Star Sydney Event Centre and some other spaces at The Star Sydney to Foundation Theatres for AU$60m (US$37.5m). All regulatory consents were obtained, including from the NSW Independent Casino Commission (NICC) and the state of New South Wales.
The NICC’s added certain conditions, including that proceeds must be held in escrow.
The company said: “Amounts may be released from escrow with the NICC’s consent, with the full amount to be released the day after shareholder approval is obtained for the AU$300m strategic investment into The Star under the binding terms sheet with Bally’s Corporation. If shareholder approval is not obtained, then The Star may request the release of the amounts in escrow subject to the group’s satisfaction of certain financial viability conditions.”
