Executives from US-based private credit firm WhiteHawk Capital have travelled to Australia to inspect the casino operations of The Star Entertainment Group. The visit comes as the lender weighs a potential refinancing package of more than AU$400m (US$263m), according to The Australian Financial Review.
Sources familiar with the discussions said WhiteHawk managing director Alex Zuckerman and his team are visiting Star’s three major precincts in Sydney, Brisbane and the Gold Coast as part of their due diligence process. The proposed loan would replace Star’s existing AU$430m debt facility, with the company aiming to finalise a new financing arrangement before the end of the month.
The refinancing push follows the takeover of Star by US casino operator Bally’s and Australia’s Mathieson family in November. The new owners now hold more than 61% of the company and are seeking to restructure the group’s finances while negotiating more favourable lending terms.
Star’s current lenders include Soul Patts, Macquarie, Perpetual and Deutsche Bank. Although they have repeatedly waived covenant breaches, they have charged substantial fees to do so.
Sources said lenders had sought as much as AU$20m in waiver fees, equivalent to almost 5% of the loan value. Some lenders may still participate in the refinancing, though the preference is for WhiteHawk to act as sole lender.
Star’s financial difficulties date back to the suspension of its Sydney casino licence in 2022 following anti-money laundering breaches. The group has since faced tighter gambling regulations and cost overruns tied to its Brisbane development.
Under new Chief Executive Bruce Mathieson Jnr and Chairman Soo Kim, the company is undertaking sweeping cost reductions, including dismantling its corporate office and shifting management responsibility back to its individual casino properties. The restructuring is expected to result in hundreds of job losses.
Star narrowly avoided default last month after its lenders granted another waiver on strict loan covenants tied to leverage and interest coverage ratios
