Updated:2024-03-21 15:08 Views:56
The company said it would raise the money at a share price of $1.20 or a 21% discount from its most recent trading price.
The stock transaction was a need to get covenant relief from lenders， to whom the Star owed $1.3bn as of 31 December.
The equity raise will decrease the Star's net debt from $1.1bn to $431m and gearing from 2.7 to 0.8 times.
The company also disclosed that it would take a $988m impairment charge on the Star Sydney， which has struggled financially since the Bell report and at a time when the NSW government is debating imposing significant tax increases on gaming tables and poker machines.
Robbie Cooke， CEO and Managing Director of Star， said: “If those tax hikes went ahead in their current form， it would cost Star about $100m a year， basically doubling its tax bill and forcing it to take drastic measures.
"It does put the business in a very difficult position， and it would require very significant changes to the business."
For the six months ending 31 December， Star reported a net profit after tax revenue of $44m on $1bn， excluding the $988m impairment.
The Star Gold Coast's income increased to $276m throughout the time，Casino games 30% more than in 2019–20. The Star Sydney's $541m income represented a 14% decrease from pre-Covid time.
Meanwhile， a 1，500-person ballroom， a sky deck， over 50 restaurants， bars and cafés， luxury shopping and 7.5 hectares of public space are all included in the $2.9bn Queen's Wharf Brisbane project， which is scheduled to open in December.