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Star pauses ASX trading amid capital restructure

| By Robert Fletcher
The Star Entertainment Group has paused trading on the Australian Stock Exchange (ASX) after revealing details of a large-scale capital restructure.
Star ASX

Star’s shares on the ASX are halted from today (25 September) until trading begins on the morning of 27 September. The ASX has approved the trading halt following a request from Star.

In the meantime, Star has set out a series of capital structure initiatives for the group. At the centre of this is an AU$750.0m (£394.3m/€453.3m/US$482.2m) capital raising.

Star has also agreed $450.0m worth of new debt facilities with Barclays Bank and Westpac Banking Corporation. This includes a $150.0m four-year revolving credit facility and $300.0m four-year underwritten term loan.

This, Star says, will allow all existing debt to be repaid and cancelled, as well as provide more flexible support for ongoing operations and funding requirements. Debt maturities are not due until the second half of 2027.

“Today’s announcement is a key milestone in the renewal of Star,” Star CEO and managing director Robbie Cooke said. “With an optimised capital structure, strengthened balance sheet and enhanced flexibility, we have a strong platform from which to deliver on our renewal program and strategic priorities.”

Star slips to $2.4bn full year loss 

The announcements come after Star last month announced a full-year loss of AU$2.4bn as it counted the cost of a writedown in the value of its casinos in Sydney, Gold Coast and Brisbane.

Some $2.8bn of outgoings were labelled “significant items” for the year to 30 June 2023. This followed a string of fines and penalties in recent years.

This consisted of an AU$2.2bn non-cash impairment of the Sydney, Gold Coast and Treasury Brisbane goodwill and property assets. There were also regulatory and legal costs of AU$595m, debt restructuring costs of AU$54m, and redundancy costs of AU$16m.

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