The Star Entertainment Group Announces Capital Restructuring Initiatives

These initiatives include equity raising and new debt facilities, as part of a broader refinancing process to optimize funding arrangements and capital structure.

Equity Raising

The Star intends to raise $750 million through an equity raising plan, comprising two key components:

Pro Rata Entitlement Offer: Approximately $589 million will be raised through a 1-for-1.65 pro rata accelerated non-renounceable entitlement offer. Eligible shareholders will have the opportunity to subscribe to new fully paid ordinary shares (New Shares) at the equity raising price.

Institutional Placement: An additional $161 million will be secured through an institutional placement of New Shares, further strengthening the company’s capital position.
New Debt Facilities:

The Star has also secured $450 million in new debt facilities from Barclays Bank PLC and Westpac Banking Corporation. These facilities consist of a $150 million four-year revolving credit facility and a $300 million four-year underwritten term loan.

Enhanced Financial Flexibility

Upon successful implementation of these initiatives, The Star anticipates several key benefits, including:

• Repayment and cancellation of all existing debt, totaling $668 million.
• No debt maturities until the second half of Calendar Year 2027 (FY28).
• A more flexible covenant package to support ongoing operations and funding requirements.
• Retention of strategic, world-class assets.

Dividend Suspension

The Star Entertainment Group has suspended dividend payments until specific conditions are met, including an adjusted net leverage ratio below 1.5x, resolution of AUSTRAC civil proceedings, and completion of QWB debt refinancing.

Robbie Cooke, Group Chief Executive Officer and Managing Director of The Star, expressed confidence in these capital restructuring initiatives, emphasizing their significance in the company’s renewal program and strategic priorities.

Equity Raising Details

The Equity Raising consists of a 1-for-1.65 pro rata entitlement offer and an institutional placement of New Shares. The offer price for the entitlement offer is set at $0.60 per New Share, representing a discount to the theoretical ex-rights price (TERP) and the last closing price of SGR shares.

The entitlement offer is non-renounceable, meaning that entitlements cannot be traded or transferred. Unexercised entitlements, including those of ineligible institutional shareholders, will be placed into an institutional shortfall bookbuild and sold at the equity raising price.

The Star Entertainment Group’s capital structure initiatives mark a significant step toward optimizing its funding arrangements and capital position. With equity raising and new debt facilities in place, the company aims to enhance its financial flexibility and support ongoing business needs while retaining its valuable assets.