The Star Entertainment Group (ASX:SGR) has taken a decisive step toward stabilising its balance sheet, announcing a binding commitment letter with WhiteHawk Capital Partners for a comprehensive debt refinancing package.
The deal, finalised on March 27, secures approximately US$390 million, providing the embattled casino operator with the critical liquidity needed to maintain ordinary operations.
The three-year facility is designed to fully refinance the Group’s existing debt while injecting incremental capital.
Under the terms of the agreement, the interest rate will be tied to the term SOFR plus a margin consistent with recent facility agreements.
However, the deal comes with stringent oversight; The Star must maintain a minimum liquidity covenant starting at $50 million, which scales up to $100 million after 18 months.
Additionally, the group must comply with a minimum asset coverage ratio and EBITDA covenants beginning in late 2026 and early 2027.
Implementation remains subject to several conditions precedent, most notably the completion of the disposal of The Star's interest in the Destination Brisbane Consortium and the receipt of necessary regulatory approvals.
Management is reportedly working "expeditiously" to close the transaction by May 15.
The deadline is vital for the group to satisfy waiver conditions previously granted by its existing senior lenders.