Star Entertainment courts US lender in $400m refinancing push
Star Entertainment is in active talks with California-based private credit firm WhiteHawk Capital over a potential loan of more than $400 million, with the firm's executives flying to Australia to tour the casino operator's three properties before committing to a deal.
WhiteHawk managing director Alex Zuckerman and his team are visiting Star's Sydney, Brisbane and Gold Coast precincts as due diligence ahead of a binding agreement, according to sources familiar with the matter who requested anonymity. Star is working to replace its existing $430 million loan facility with the new arrangement before month's end, having secured another debt waiver from current lenders last month to avoid immediate default. Star declined to comment.
The push to refinance comes under the watch of new majority owners Bally's — the US casino group with 19 properties — and Australia's Mathieson family, known for their pub and pokies empire, who together took control of Star in November and hold more than 61 per cent of the company. The new owners are seeking more favourable loan terms as part of a broader turnaround strategy for the embattled group.
Current lenders — including Soul Patts, Macquarie, Perpetual and Deutsche Bank — have repeatedly waived strict covenant conditions tied to leverage ratios and interest coverage tests, but at a cost the new ownership considered excessive. Fees of up to $20 million, or nearly five per cent of the loan value, were being sought for each waiver.
While some existing lenders, including Soul Patts, are understood to be open to participating in the new package, the preferred outcome is for WhiteHawk to act as sole provider.
Star chairman Soo Kim is also in the country, working alongside new chief executive Bruce Mathieson jnr to accelerate a corporate restructure expected to result in hundreds of job losses as the group dissolves its centralised management structure and hands operational control back to each of its three casino precincts.
The operator has been under sustained financial pressure since its Sydney casino licence was suspended in 2022 following breaches of anti-money laundering and counter-terrorism financing laws — a regulatory blow compounded by shifting gambling regulations and significant cost overruns on its Brisbane precinct development. The business has come close to running out of cash at least twice in the past 18 months.
Previous management under former chief executive Steve McCann took steps to stabilise the balance sheet after his arrival in mid-2024, reducing the senior debt facility and executing asset sales including the Star Sydney Events Centre and a 50 per cent stake in Queen's Wharf. However, long-form documentation on the latter has not been finalised, leaving Star still exposed to $700 million in associated debt. McCann resigned abruptly in December.
Further uncertainty remains around the quantum of a penalty expected from regulators over the anti-money laundering breaches. Star has previously flagged that a fine exceeding $100 million could threaten its viability.
With shares closing at 12 cents on Friday, the stakes around the WhiteHawk negotiations couldn’t be higher. A successful refinancing would provide the breathing room Star's new leadership needs to execute its turnaround.
Jonathan Jackson, 17th March 2026
