. It followed an extensive strategic review undertaken by Barrenjoey Capital Partners after Star was buffeted by intense regulatory scrutiny and hundreds of millions of dollars in penalties for breaching anti-money laundering and counterterrorism financing laws.A fine levied by financial crimes watchdog AUSTRAC, four class actions and two revoked state casino licences weighed on the embattled casino operator in the last financial year, culminating in a $2.
. Statutory earnings before interest, tax, depreciation and amortisation excluding any significant items was slightly above previously announced guidance at $317 million for the year ending June 30.In a statement on Monday, the company said it had “undertaken an extensive process and evaluated a range of funding and asset sale alternatives .”
Under the arrangement, the company will have no debt maturities until the second half of 2027 and will retain its casino operations. It will raise $589 million through a 1-for-1.65 pro rata offer of new shares at 60¢ and a $161 million institutional placement.
In a trading update, the company said monthly domestic revenues were $143.5 million in July and August. Earnings were $21 million on average.“Remediation costs [this financial year] are expected to be $35 million to $45 million,” the company said. “The previously foreshadowed 50 per cent reduction in remediation costs is not expected to occur until [2026].”
The capital raise and new loan facilities will eliminate Star’s hefty debt load and help fund costs associated with Queen’s Wharf in Brisbane, one of Star’s two big development projects under way. Star has estimated Queen’s Wharf’s project costs would be $2.9 billion. It has been in a dispute with the builder, Multiplex, which has delayed construction.
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