The Star Entertainment Group Limited (ASX:SGR) Secures $300 Million Strategic Investment
Strategic Investment
The Star Entertainment Group Limited has entered into a binding term sheet with Bally’s Corporation for a $300 million strategic investment through multi-tranche convertible notes and subordinated debt instruments.
Transaction Structure
The investment comprises $100 million in Tranche 1, payable by 9 April 2025, and up to $200 million in Tranche 2, contingent on shareholder and regulatory approvals. The notes carry a 9.0% annual coupon, are unsecured and subordinated, and mature on 2 July 2029. The conversion price is set at 8 cents per share.
Next Steps
The Board will recommend shareholders approve the transaction in a meeting targeted for late June 2025. The Star plans to distribute a shareholder booklet in May 2025 and finalize financial accounts for the year ended 31 December 2024.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.
