The Star Entertainment Group (ASX: SGR) has received a $650 million debt refinancing proposal from funds associated with Oaktree Capital Management, offering potential relief for the embattled casino operator.
The proposal, outlined in a commitment letter and term sheet, would provide financing across two debt facilities with a five-year term. However, the deal remains subject to various conditions, including government and regulatory approvals in New South Wales and Queensland, completion of due diligence, and agreement from existing lenders.
The Star’s board will now assess the proposal, but the company cautioned that there is no certainty it will progress or meet the necessary conditions. Should the proposal move forward, the company would still require additional funding in the interim before it can be implemented.
The company continues to explore other liquidity solutions, though it noted there is no guarantee that ongoing discussions will result in a material improvement in its financial position. Without securing new funding arrangements, material uncertainty remains over Star’s ability to continue as a going concern.
The refinancing offer comes as Star Entertainment faces regulatory and financial pressures following inquiries into its compliance with anti-money laundering laws and governance standards. The company has yet to indicate a timeline for a decision on the Oaktree proposal.
