Star extends deadline for massive refinancing deal as Bally’s offer looms

Star Entertainment today (25 March) announced that it has extended an exclusivity agreement with Salter Brothers Capital (SBC) as the two sides continue to discuss a massive deal that would refinance all of the embattled operator’s current debt.

In an ASX filing, Star announced that the exclusivity period with SBC has been extended to 1 April. The proposal, which would provide debt relief of up to AU$940 million (£457.5 million/€548.5 million/US$592.3 million), was first announced on 7 March. SBC was not disclosed as the lender until four days later.

Star said Tuesday that “SBC is working towards making a binding offer” for the proposal by 31 March.

If finalised, it would “provide The Star with sufficient liquidity to refinance all of the group’s existing corporate debt and is not conditional on either the purchase of the existing senior debt at a discount to par or any government tax deferrals or waivers”, the company said earlier this month.

SBC’s offer joins a similar restructuring proposal submitted by US-based Oaktree Capital in mid-February. That proposal included up to AU$650 million in relief across two debt facilities with a term of five years. As of 7 March, however, Star said that “certain conditions of the Oaktree Proposal have not yet been met”. Thus, the proposal could not be approved.

Bally’s offer also outstanding

As Star continues to mull financing options, another offer from Bally’s Corporation also looms large. The two companies have been linked since early February, when Bally’s sent officials to meet with Star and tour its three properties.

On 9 March, Bally’s submitted an offer letter to Star to acquire 50.1% of the company for AU$250 million. Bally’s indicated at the time it was also “very open to discussing a larger transaction”. Officials noted that the deal would be fully funded by Bally’s and not subject to any contingencies. The letter indicates that the offer is valid until 28 March.

A US casino giant has proposed a $250 million takeover bid for Star Entertainment just days after the company announced the sale of a major asset.https://t.co/iKXf2N5rMG

— Sky News Australia (@SkyNewsAust) March 10, 2025

The US-based operator is entering a new era, having been bought out by hedge fund Standard General in a deal that closed in February. It acquired Aspers Casino in Newcastle, UK late last year and appears to be angling for more of an international presence.

One stakeholder who has thrown support behind the Bally’s proposal is Bruce Mathieson, Star’s biggest individual shareholder. According to the Australian Financial Review, Mathieson is backing the proposal. He has also pledged an additional AU$50 million to help facilitate it. The billionaire currently holds about 10% of the company and has been approved to increase that stake to 20%. If the Bally’s deal were to go through, he could extend that stake further and take on a board seat.

Queen’s Wharf exit a major factor

The other consideration that surrounds the Bally’s deal is Star’s decision to sell off its stake in its Queen’s Wharf joint venture to partners Chai Tow Fook and Far East Consortium. That decision, announced on 7 March, was the most aggressive yet for Star as it looks to avoid insolvency. Queen’s Wharf, a multibillion-dollar development, was expected to be a major revenue driver for the operator.

However, Star brass, led by CEO Steve McCann, ultimately viewed the project as being too expensive for a company on the brink of collapse. As part of the deal, Star relinquished its future contributions to the project, which were at least AU$212 million. It was also freed from its 50% stake in the project’s debt facility, which has a drawn balance of AU$1.4 billion.

The sale price for Star’s 50% stake was AU$53 million. In turn, the company also consolidated full ownership of its Star Gold Coast property from the two partners.

Bally’s, meanwhile, does not support that deal and wishes to acquire all of Star’s assets. The company said in its offer letter that it “understand[s] the rationale for Star’s recently announced transactions”. But ultimately, Bally’s believes “our proposal offers Star and its stakeholders far greater value and operational flexibility, as well as the upside from retaining Star’s current projects and other assets”.

Bally’s chairman Soo Kim told the AFR earlier this month that “it is not too late [to make a deal]. Our proposal is not subject to due diligence or consents or anything. We can do this.”