The Star Entertainment Group has secured a binding commitment for around AU$550m (£285m) in refinancing as it continues to work towards a turnaround of the business. 

The Australian casino company has entered into a binding commitment letter with funds managed by WhiteHawk Capital Partners to refinance its existing debt and boost short-term liquidity.

Signed on Friday, the agreement follows the company’s H1 FY26 results released just weeks ago and is aimed at stabilising its financial position while supporting ongoing operations.

The proposed refinancing comprises a three-year facility totalling approximately $550m, which will be used to fully refinance existing group debt while providing additional liquidity.

A minimum liquidity requirement has been set at $50m for the first 12 months following financial close, increasing to $75m between 12-18 months and $100m thereafter.

Additional covenants include a minimum asset coverage ratio from December 2026 and a minimum EBITDA threshold from March 2027, alongside standard reporting obligations and default provisions.

An interest reserve account covering the first 12 months of interest payments will also be established as part of the financing structure.

Completion of the refinancing remains subject to a number of conditions, including regulatory approvals and the execution of detailed financing documentation.

A key requirement is the completion of the disposal of The Star’s interest in the Destination Brisbane Consortium (DBC), which forms part of the broader restructuring plan.

The Star is targeting completion of the refinancing by 15 May 2026, aligning with conditions attached to a waiver granted by its existing senior lenders in February.

The Star looking for the light

The refinancing represents a critical step for The Star as it seeks to address near-term financial pressures and maintain enough liquidity to continue normal operations.

As its FY25 results showed, the business remains optimistic about the future despite a loss of around $75m for the year. 

Bruce Mathieson Jnr, who was appointed Chief Executive Officer in December, set out plans to review the operator’s resourcing structure and strategy and recently said that its corporate office is in the process of being streamlined. 

Results released in February also showed that the last six months of 2025, which included Bally’s Corporation taking a majority 56.7% stake in the business, brought net revenue of $585m – down 10% year-on-year. 

By securing additional funding and restructuring its debt obligations, The Star is looking to create a more stable financial platform while it progresses with asset disposals and broader operational adjustments.

While the refinancing provides immediate support, its successful completion will depend on meeting regulatory and transactional milestones in the coming weeks.

The business has also experienced a tough time on the Australian Securities Exchange (ASX) so far this year, with its shares dropping by nearly 30% in 2026 to $0.12. 

Regulatory pressure in Australia will also be contributing to the tough time which The Star is experiencing at the moment, adding to a list of pressures that the business is under. 

However, securing this sum of funds could point towards the beginning of a turnaround for the now-15-year-old company which has become a prominent figure in the Australian market.