By Himanshi Akhand and Rishav Chatterjee
(Reuters) -Star Entertainment announced on Monday that Oaktree had offered Oaktree to refinance a $ 650 million ($ 413.40 million) of his debt in what could be an important lifeline for the company with cash.
Shares in the Australian casino operator rose by 8.3% to a $ 0.13 in Sydney after the announcement. The shares of the company fell more than 63% in 2024.
The range of Oaktree Capital Management was first reported by the Australian Financial Review, which said that the assets of asset management had approached the Ster -money syndicate, including Westpac, Barclays and Washington H Soul Pattinson together with other investors who offer their fault to acquire with a discount.
Star said it was considering the offer, but did not provide any guarantees that the proposal would be accepted.
If the proposal is accepted, this would result in the dilution of the shareholders of the investors of the casino operator and make an important investor in the future. Oaktree was not immediately available for comment outside office hours.
Star was urgently tried to withdraw capital after he had expressed doubts about the viability last month due to a cash crisis. The company must collect a $ 150 million in disadvantaged debts to continue with further loans of $ 100 million.
The heavily ignited gaming company has been struggling for years in the midst of a crisis that affects Australian casino operators, with stars and larger rival crown resorts, owned by Blackstone, confronted with several regulatory questions, reduced tourist visits and long closures.
The company has repeatedly warned investors that the conditions remain a challenge for the company to continue to operate.
“We would warn a significant rise in the star race of the star, since the currently very public dirty laundry would probably be a considerable liability for those who buy the group control,” said Jesse Moors, portfolio manager at Spatium Capital.
“Oaktree is likely to be knowledge and aggressive in their negotiations about this; who can dilute the current or new shareholders in the star.”
Star said that different conditions must be met for Oaktree’s offer to continue, including an “extensive” security package, approvals of governments and supervisors in New South Wales and Queensland, the completion of due diligence and existing creditors who have a settlement and /or refinancing agreement concerning satisfactory for Oaktree.
($ 1 = 1,5723 Australian dollars)
(Reporting by Himanshi Akhand in Bengaluru; Edit by Sonali Paul and Jacqueline Wong)
