Australia’s Star Entertainment Group confirmed Monday it has entered into a binding term sheet with US casino operator Bally’s Corp to take control of the company as part of a AU$300 million (US$180 million) deal.
The term sheet, comprising a multi-tranche convertible note and subordinated debt instrument, will see Bally’s assume convertible notes convertible to 56.7% of Star’s issued share capital, while a separate tranche will provide subordinated non-convertible debt of AU$66.6 million.
The last-ditch effort to avoid falling into administration will see Star receive AU$100 million on or before this Wednesday 9 April – allowing it to reach its short-term obligations, plus another AU$200 million wither following a shareholder vote and receiving regulatory approvals, or AU$100 million after a shareholder vote and the remaining AU$100 million after regulatory approvals.
