The Star’s shareholders to vote on Bally’s Corp funding proposal

The casino operator’s directors have recommended that shareholders vote in favour of the binding agreement.

Australia.- The Star Entertainment Group has announced that its shareholders will vote on Bally’s Corporation funding proposal at its next general meeting on June 25. Directors of the casino operator have unanimously recommended that shareholders vote in favour “in the absence of a superior proposal.”

Bally’s would contribute AU$200m (US$130.5m) in funds to The Star, while Investment Holdings Pty Ltd, controlled by the Mathieson family, would invest AU$100m (US$65.3m).

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, with a maturity date of July 2, 2029.

Shareholders will also consider Placement Capacity Refresh Resolutions under ASX Listing Rule 7.4, which seek the approval and ratification of convertible notes issued on April 11. Bally’s received 278,517,860 convertible notes, while Investment Holdings was allocated 139,258,930 notes.

In the company filing, investment consultant Grant Samuel & Associates said The Star is in “the midst of an existential liquidity crisis” and that it was “in desperate need of additional funds and there is no scope for more funding from existing lenders.” It said existing cash was insufficient to meet needs over the next twelve months and that “urgent action is needed to inject new funding into the business “

For the third quarter of the financial year 2025, The Star reported net revenue of AU$271m (US$173.8m). That’s a decrease of 9 per cent sequentially and 35.35 per cent in year-on-year terms.. Earnings before interest, taxes, depreciation and amortisation (EBITDA) were negative AU$21m (US$13.4m) compared to negative AU$8m (US$5.1m) in the previous quarter. The company said the results reflect “a seasonal softening in revenues, reduced levels of gaming visitation and the one-off impact of adverse weather events driving property closures in Queensland in March.”