Star Entertainment finalises debt package, to announce FY results
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The news: Embattled casino operator Star Entertainment Group has finalised a debt facility with its lenders and will release its annual results later on Thursday.
The numbers: The company said in a statement late on Wednesday that its existing $450 million debt facility has been reduced to $334 million, while lenders have agreed to provide a new facility of up to $200 million, with the first tranche available from October-end and the second from December-end. The new and existing debt will have an interest rate of 13.5%.
The context: Star said it will release its FY24 results on Thursday following the agreement. The deal comes after weeks of discussions between the firm's top management, lenders, state governments and other stakeholders regarding its financial position.
The gaming firm announced the sale of its Treasury Casino property in Brisbane earlier this month as it scrambled for fresh financing to manage cost blowouts at its new Queen’s Wharf development.
The embattled casino operator shares were suspended from the ASX after the company failed to lodge its full-year financial report last month.
It followed a months-long inquiry that found it breached compliance rules between September 2022 and July 2024 and concluded Star remained unsuitable to operate its flagship Sydney casino.
Star shares have lost more than 50% of their value over the last 12 months amid a shrinking premium gaming market and regulatory troubles.
The source: ASX announcement
