Star Entertainment’s group of lenders lack leadership and don’t have any real game plan for how to deal with the troublesome casino operator, observers say.
DataRoom understands Star does not know how, when or where it will get the additional funds it needs, but to be fair, recently appointed boss Steve McCann is focused on ensuring it retains its licence and remains in operation.
But as the regulatory saga plays out, many of the stakeholders are wondering what to do next.
Star has five options: it can raise equity again, strike a convertible bond deal with a player like Oaktree or Apollo, sell more assets, find a buyer – or become insolvent, with its lenders calling in its loans.
Some overseas suitors have had a look, but they are not credible buyers.
Star – which owns casinos in Sydney, Brisbane and on the Gold Coast, and has been criticised by regulators for allowing money laundering to take place at its venues – has a $300m term loan and a $150m revolving credit facility, $30m of which has been drawn. Lenders include Macquarie, Deutsche Bank, Perpetual, Regal, Barclays, Soul Patts and ARCM.
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