The Star Entertainment Secures $200M Debt Facility Amid Financial Challenges

The Star Entertainment Group has finalised a AU$200 million debt facility and obtained a waiver for covenant testing due at the end of 2024, providing much-needed financial flexibility during a challenging period.
The debt facility, announced via an update to the Australian Securities Exchange (ASX), is structured in two tranches of AU$100 million each. Both tranches will be available for drawdown until 20 December 2024. Additionally, lenders have waived the covenant testing requirement for 31 December 2024, reducing immediate financial pressures.
The announcement comes as The Star grapples with significant financial and regulatory hurdles. In its Q1 FY25 financial report, the company reported an 18% year-on-year decline in revenue to AU$351 million and a 130% drop in EBITDA, resulting in a loss of AU$18 million. This followed a 45% decline in statutory EBITDA for the full 2024 fiscal year, with pressures stemming from rising operational costs and regulatory demands.
In October, The Star Sydney was fined AU$15 million by the New South Wales Independent Casino Commission (NICC) for compliance failures. The casino’s licence remains suspended until at least March 2025, with operations under the supervision of an NICC-appointed manager.
The debt facility aims to support The Star’s phased opening of The Star Brisbane while meeting regulatory requirements and stabilising operations. Earlier this year, Treasury Brisbane was permanently closed as part of a broader operational restructuring.
Chair Anne Ward, in The Star’s 2024 Annual Report, emphasised the company’s commitment to rebuilding trust with stakeholders and regulators. The debt facility, coupled with remediation plans, is expected to address immediate financial needs and aid in restoring the company’s position in the market.