Australian operator Star Entertainment Group has entered into a rescue package deal with Bally’s for AU$300m.
The funding will comprise two tranches, the first of which will be of $100m, is due this Wednesday (April 9). The second, of $200m, will come following shareholder approval and regulatory clearances.
The convertible notes will give Bally’s around a 56.7 per cent share of the company.
“This transaction provides Bally’s the opportunity to infuse The Star with what it needs to regain its position as Australia’s preeminent gaming destination,” said Soo Kim, chairman of Bally’s. “And it allows The Star shareholders to share in what we confidently believe will be a brighter future together.”
George Papanier, president of Bally’s added: “We are excited to bring our reputation and operating expertise to a wonderful set of properties that operate in fantastic markets. We are up for the challenge.”
