US casino group Bally's says it's willing to rescue Australia's Star > 자유게시판

• 목록
• 답변
• 글쓰기
• 게시판 리스트 옵션
  • 수정
  • 삭제

Current proposal worth at least A$250 million



Bally's would take 50.1% via convertible notes under proposal



Bally's very open to discussing larger transaction

*

Star weighing Bally's proposal, along with others

(Adds Bally's chairman quote in paragraph 5)

By Scott Murdoch and Rishav Chatterjee

March 10 (Reuters) - U.S. casino group Bally's has offered Star Entertainment a A$250 million ($158 million) recapitalisation package that could give it majority control, as the Australian casino company fights for survival.

In a statement, Bally's said its offer was fully-funded, not subject to approval and the Rhode Island-headquartered firm was "very open" to discussing a larger transaction.

Debt-laden and cash-strapped Star said it would review the proposal - one of several it is weighing as it seeks to continue as a going concern and stave off voluntary administration.

New York-listed Bally's said it was willing to move quickly to underwrite convertible notes subordinated to existing senior lenders and which would be convertible to 50.1% of its shares.

"Bally's would partner with Star in deploying our significant operating experience in turning around seo engines casino assets and growing highly successful casino businesses globally," Bally's chairman Soo Kim said in a letter to Star released to the Australian Securities Exchange (ASX) on Monday.

Negotiations to save Star through refinancing and recapitalisation packages have come down to the wire with the casino group admitting it was fast running short of money.

Star's shares have been suspended from trading after it missed two deadlines to report its half-year results.

Bally's said it would be supportive if existing shareholders in Australia's No. 2 casino operator wanted to participate in the capital raising.

"We would also be happy to explore alternative structures that would similarly preserve value for all key constituents, including regulators, creditors, equity holders, and employees," Kim wrote in the letter.

Star recently secured a A$250 million bridging facility with U.S. hedge fund King Street Capital Management and last week said it would sell its 50% stake in its Queen's Wharf project in Brisbane to Far East Consortium International and Chow Tai Fook Enterprises, as part of an asset swap deal.

It is also looking at a debt refinancing proposal of up to A$940 million from an unidentified U.S. investor as well as a A$650 million refinancing offer from U.S. debt investor Oaktree.

Star chief executive Steve McCann said the Brisbane property deal and the bridging loan had improved the company's "capacity to have a viable future".

Star said on Friday the Oaktree offer has not been finalised as certain conditions have not yet been met.

The Bally's offer, if progressed, would value Star at about A$500 million, well down from its A$3.5 billion market capitalisation in 2021.

Australia's casino sector has been experiencing a protracted downturn with damaging regulatory inquiries and lockdowns and a border closure related to COVID-19, followed by rising costs of debt.

The country's largest casino operator, Crown Resorts, accepted an A$8.9 billion buyout from U.S. private equity investor Blackstone in 2022. Star itself made an approach to buy Crown in 2021 before pulling out due to regulatory uncertainty.

"Importantly, the Bally's offer now means that Star has more than one option on the table in endeavouring to dig its way out of financial strife," said Tim Waterer, market analyst at KCM Trade.

Bally's owns and operates 19 casinos across 11 states in the U.S., along with a golf course in New York and a horse track in Canada. ($1 = 1.5860 Australian dollars) (Reporting by Scott Murdoch in Sydney and Rishav Chatterjee in Bengaluru; Additional reporting by Byron Kaye in Sydney; Editing by Edwina Gibbs and Lincoln Feast)