The Star Entertainment Group has received an AUD$650 million (approx €395 million) debt refinancing offer from Oaktree Capital Management.
The proposal is subject to numerous conditions, including a comprehensive security package that would have to be approved by the New South Wales and Queensland governments and regulators.
The refinancing offer would also need the approval Star Entertainment’s current lenders via a refinancing agreement or settlement.
The casino operator has said that it will consider the proposal outlined by Oaktree but warned that it will still need to raise additional funding to cover the period before any potential deal is agreed.
In addition to the Oaktree proposal, the operator is also exploring other liquidity options to ensure its ability to continue as a going concern.
This is the second debt lifeline that The Star has been offered following an AUD$200 million debt facility in October 2024, of which the company received $100 million. The second tranche of $100 million has not been released, as the company failed to meet its obligation to raise an addition $150 million from other sources.
Shares in Star Entertainment Group Ltd. (ASX:SGR) gained 14.81 per cent to close at AU$0.16 per share in Sydney Tuesday.