The Star Entertainment Group has entered into a binding credit facility agreement with funds associated with WhiteHawk Capital Partners, securing a US$390m refinancing package to replace its existing debt arrangements.
The three-year facility, equivalent to approximately AU$540m at prevailing exchange rates, will refinance the group’s previous AU$400m syndicated facility agreement in full. The annual interest rate will be based on Term SOFR plus a margin, resulting in a rate broadly consistent with that under the company’s prior credit facilities.
Under the terms of the agreement, quarterly amortisation will commence from 31 March 2027. The facility includes a minimum liquidity covenant of AU$50m for the first 12 months following financial close, increasing to AU$75m between 12 and 18 months, and to AU$100m thereafter. A minimum asset coverage ratio of 1.40x, based on the fair market value of secured assets relative to outstanding principal, will also apply, with first testing scheduled for 31 December 2026.
The agreement further requires a minimum EBITDA covenant from 31 March 2027 and the establishment of an interest reserve account covering the first 12 months of interest. Customary financial covenants, representations, undertakings and reporting obligations are also included.
Upon completion of the refinancing and after funding the required interest reserve account, The Star expects to have approximately AU$130m in additional liquidity. The group said the enhanced liquidity position will support ongoing operational requirements and the execution of cost reduction and strategic initiatives.
Completion of the refinancing is expected imminently, satisfying conditions linked to a waiver previously granted by the company’s former senior lenders in February 2026.
Minimum liquidity covenant set at AU$50m in the first year, rising to AU$100m thereafter
