Star Entertainment Lenders Provide Commitment for Up to AUD 200M New Debt Facility at All-in Coupon of 13.50%; Co. Expects to Publish FY’24 Results on Sept. 26

Australian casino operator The Star Entertainment Group Ltd., or The Star, announced to the ASX today, Sept. 25, that its lenders have executed a commitment letter for a new debt facility of up to 200 million Australian dollars ($137.46 million) in two-tranches. The all-in coupon for the new facility is 13.50% per annum (assuming cash pay is elected), and the existing AUD 300 million term facility has been repriced to this level, the announcement states. The maturity date is consistent with the existing term loan (December 2027). The Group will also retain up to AUD 34 million of bank guarantees under the existing revolving credit facility. The company has the flexibility to capitalize a component of the interest at its election and there is a reduction in the coupon subject to the group’s adjusted net leverage ratio falling below 4.0x, according to the announcement. The Star’s lenders have agreed to provide covenant waivers for the next two testing dates, being Sept. 30, 2024 and Dec. 31, 2024, with the waiver for the latter date being subject to execution of long-form documentation for the new debt facility and other customary conditions. The company’s existing AUD 450 million facility has been reduced[...]