Stars acquire a potential lifeline as Oaktree offers refinance. Stock meeting

By Himanshi Akhand and Rishav Chatterjee

(Reuters) – Star Entertainment said on Monday that US-based Oaktree could become a major lifeline for cash-strap companies, $650 million ($433.4 million) It has announced that it has offered to refinance the debt.

The Australian casino operator shares rose 8.3% to $0.13 in Sydney after the announcement. The company’s shares plummeted more than 63% in 2024.

The offer for Oaktree Capital Management was first reported by an Australian financial review. It said the asset management company has offered to acquire debt at a discount, including other investors in the star lender syndicate, including Westpac, Barclays and Washington H Soul Pattinson.

Starr said it was considering the offer but did not guarantee that the proposal would be accepted.

If the proposal is accepted, it will lead to diluting the stockholdings of casino operator investors, making future Oaktree a key investor. Oaktree could not immediately comment outside of opening hours.

The star has been urgently trying to raise capital last month after expressing doubt about its feasibility of cash crunch. The company will need to raise $150 million in subordinated debt to further its $100 million borrowing.

The heavily led gaming company has struggled for many years amid the crisis that Blackstone owns stars and large rival Crown Resorts affect Australian casino operators.

The company has repeatedly warned investors that it remains difficult for the company to continue its business.

“We’re looking forward to seeing you in the future,” said Jesse Moors, Portfolio Manager at Spatium Capital.

“Oaktree could be cognitive and aggressive in negotiations for this, which could dilute the star’s current or new shareholders.”

Star includes “comprehensive” security packages, approvals from governments and regulatory authorities in New South Wales and Queensland, completion of due diligence, and refinance agreements from existing creditors; I am pleased with Oak Tree, which stated that several conditions must be met for Oak Tree to proceed.

($1 = 1.5723 Australian dollars)

(Reporting by Himansh Akhand of Bengaluru, edited by Sonari Paul and Jacqueline Wong)