Consumer
Star Gets Debt Lifeline and Needs Even More to Survive
- Casino operator facing ‘significant challenges,’ CEO says
- Fresh $200 million debt carries hefty 13.5% interest rate
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Star Entertainment Group Ltd. won a new A$200 million ($136 million) debt facility and is looking for yet more capital in a desperate bid to shore up its balance sheet and keep hold of its Sydney casino.
After weeks of negotiations, Star’s corporate lenders are providing extra funds in two equal tranches. The company has agreed to pay annual interest of 13.5%, a distressed-asset rate that reflects Star’s urgent need for cash and its fragile finances. The first portion should be available from the end of October.