Article/Intelligence
Star Entertainment AUD 300M Term Loan Exited By At Least Three Funds With ~AUD 60M Ahead of AUD 200M New Debt Deal; Equity Raise Planned
Reporting: Stephen Aldred At least three of the original lenders in Star Entertainment Group’s 300 million Australian dollar ($207 million) senior refinancing loan have recently traded out of their respective positions, including Davidson Kempner, or DK, ahead of a new debt deal announced yesterday, according to a source close to and a source familiar with the matter. The trades of the facility raised late-last year totaled around AUD 60 million to AUD 65 million, said two sources with knowledge of the matter. ASX-listed casino operator Star Entertainment announced yesterday, Sept 25, that it had obtained a commitment letter for a new AUD 200 million, two-equal-tranche, 13.5% debt, as reported. The new debt was agreed with a mix of legacy and new lenders (more below),, said the source close and a second source familiar. In addition to the two AUD 100 million tranches of new debt, the company is eyeing a potential equity raise before the end of the year to alleviate its liquidity problems, said the source close. The second AUD 100 million tranche is conditional on Star raising AUD 150 million subordinated capital, according to the Sept 25 announcement. Star Entertainment, in response to Reorg’s questions on the recapitalisation arrangements,[...]