What are the details of the refinancing deal for The Star Entertainment Group (ASX:SGR)?

The Star Entertainment Group (ASX:SGR) has signed a binding credit facility agreement with WhiteHawk Capital Partners worth approximately A$540 million (US$390 million). This three-year facility is designed to fully refinance the Group’s existing debt and provide a liquidity bridge for ongoing operations.

How much new cash will The Star Entertainment Group (ASX:SGR) have after this deal?

Following the refinancing, The Star (ASX:SGR) will have additional liquidity of approximately A$130 million. This figure is net of the interest reserve account, which requires the company to set aside twelve months of interest payments upfront to mitigate lender risk.

What does this debt restructuring mean for The Star's (ASX:SGR) financial health?

This deal provides a vital "liquidity bridge," meaning it gives the company short-term breathing room to stay solvent while it attempts a turnaround. By refinancing its debt in full, The Star avoids immediate default risks on its previous obligations.

What are the key risks and covenants The Star (ASX:SGR) must manage now?

The Star (ASX:SGR) must maintain a minimum asset coverage ratio of 1.40x and adhere to escalating liquidity covenants. These require the company to hold at least A$50 million in cash for the first year, rising to $100 million over time.

When will The Star (ASX:SGR) be tested on its financial performance?

The first major testing date for the asset coverage ratio is 31 December 2026. Additionally, the company must begin meeting minimum EBITDA (earnings before interest, taxes, depreciation, and amortisation) targets and quarterly debt repayments (amortisation) starting from 31 March 2027.

Is this refinancing deal good or bad for The Star (ASX:SGR) shareholders?

It is a double-edged sword. On the positive side, it prevents immediate insolvency and provides A$130 million in fresh capital to fund a turnaround. On the negative side, the strict covenants, interest reserve requirements, and low share price of $0.11 reflect a high-risk profile.

The Star Entertainment secures $540M debt refinancing deal

Written by Liezl GambePublished May. 7 2026Last Updated May. 7 2026

The Star Entertainment Group (ASX:SGR) has formalised a binding credit facility agreement with WhiteHawk Capital Partners.

The refinancing package, valued at approximately $540 million, is designed to fully restructure the group’s existing debt obligations and provide a vital liquidity bridge for its ongoing operations.

The new three-year facility carries an interest rate linked to the term SOFR plus a margin, maintaining cost consistency with previous arrangements.

The deal infuses the group with roughly $130 million in fresh net liquidity, earmarked to support strategic initiatives and cost-reduction programmes.

The Star must adhere to escalating liquidity covenants, starting at $50 million for the first year before rising to $100 million.

Furthermore, the company is bound by a minimum asset coverage ratio of 1.40x and must meet minimum EBITDA targets commencing in March 2027.

To mitigate lender risk, the deal includes the establishment of an interest reserve account funded with twelve months of interest payments.

At the time of reporting, Star Entertainment Group’s share price was $0.11.