Star Secures Refinancing Deal With WhiteHawk Worth $390M

Star Entertainment Group has secured a binding commitment for a US$390 million refinancing with funds linked to WhiteHawk Capital Partners. The agreement, confirmed in an ASX filing on 30 March 2026, is intended to provide fresh liquidity and address existing debts.

The deal follows an in-principle agreement reached in late February, with the company signing a binding commitment letter on 27 March. The three-year facility is structured to fully refinance current group debt while providing liquidity for daily operations.

The financing carries an interest rate based on Term SOFR plus a margin aligned with recent borrowing arrangements. Repayment will begin through quarterly amortisation from 31 March 2027.

Also, the agreement sets strict liquidity thresholds. Star must maintain at least A$50 million in available liquidity during the first year, rising to A$75 million between months 12 and 18, and A$100 million thereafter. The structure includes minimum asset coverage and EBITDA covenants, plus reporting obligations and default provisions.

An interest reserve account will also be set up to cover the first 12 months of interest payments.

Refinancing timeline tied to lender conditions

The refinancing is linked to conditions agreed with existing lenders. On 27 February 2026, Star received a waiver to secure a refinancing commitment by 31 March and complete the process by 15 May to avoid default.

The company confirmed it is working towards closing the transaction within this timeline. Completion remains subject to final documentation, regulatory approvals and the sale of its stake in the Destination Brisbane Consortium.

Market reaction to the announcement was subdued, with shares falling around 4%, roughly in line with a 1% decline in the ASX200 index.

Analysts have described the refinancing as critical for the brand. Marc Jocum said: “The WhiteHawk refinancing is the oxygen Star Entertainment Group desperately needed.”

He added: “It removes near-term default risk and buys management time, shifting the narrative from survival to execution.”

He also touched on underlying challenges. “But this isn’t a cure… unresolved AUSTRAC (Australian Transaction Reports and Analysis Centre) penalties, a suspended Sydney licence, and ongoing revenue softness mean fundamentals remain fragile.”

Regulatory investigations and compliance failures continue to impact operations

The deal comes after several years of regulatory scrutiny. Investigations into operations in Sydney, Brisbane and the Gold Coast identified failures in anti-money laundering controls.

In 2022, the New South Wales Independent Casino Commission ruled that Star was not suitable to retain its Sydney licence. The company was fined A$100 million, its licence was suspended, and a special manager was appointed.

In Queensland, regulators delayed a planned suspension of the Gold Coast licence until September 2026 due to the company’s financial condition and remediation progress.

Financial results highlight ongoing losses despite recent signs of stabilisation

The financial impact of these issues is visible. For the year ending 30 June 2025, Star reported a net loss of A$471.5 million, an improvement from A$1.69 billion in the previous year due to lower impairment charges.

Revenue declined by 29% to A$1.19 billion, owing to regulatory changes such as mandatory carded play and cash limits.

The first half of FY26 showed a weak performance. Normalised net revenue fell 25% to A$649.6 million, while EBITDA recorded a loss of A$26.4 million. Net loss after tax reached A$301.9 million.

More recent quarterly figures showed modest improvement. Revenue increased 5% to A$284 million, while EBITDA losses narrowed to A$13 million.

The company has also pursued asset sales and external funding to support its recovery. In late 2025, regulators approved a A$300 million rescue package from Bally’s Corporation and Investment Holdings, providing additional capital and a controlling interest.

The WhiteHawk agreement is central to Star’s efforts to stabilise operations by refinancing current debts and providing liquidity.