The new debt comes as the future of the casino group looks to be in doubt amid mounting financial and regulatory problems.
The first tranche of credit can be accessed subject to several conditions, including enhanced security for lenders and regulatory approval.
To draw the second piece of debt the company must comply with several stringent conditions.
The business will need to have its long-term strategic plan and financial forecasts approved by lenders, as well as raise an additional A$150m on top.
The debt facility is priced at 13.5% per year, with the existing A$300m credit agreement priced at this level.
Star reports A$1.69bn loss
In its financial report published today (26 September), the group reported a A$1.69bn loss for the financial year ending 30 June.
This was primarily driven by a $1.44bn non-cash impairment charge due to challenging trading conditions and regulatory changes, it said.
The loss came on revenue of A$1.68bn, representing a 10% fall from the same period the previous year.Star said this resulted from difficult trading conditions due to cost-of-living pressures, casino reforms and loss of market share.
The report stated the casino holds cash of A$130m, although it faces significant near-term liquidity needs including current operations, transformation activities and anticipated outflows for regulatory matters.
The company is likely to be hit with another financial penalty by NSW regulators after the second Bell Report into the casino found significant continued failings.
The operator said: “The Star continues to assess additional avenues to further its liquidity position, including other potential capital sources such as subordinated debt.
“A range of initiatives and other measures have been identified and are being implemented to improve business performance, drive revenue and enhance The Star’s liquidity position.”
The group was also in negotiations with the Queensland government for tax relief.
However, the deal reportedly fell apart after Star refused to budge on the issue of bonuses for its executives.
“We were very reasonable in considering tax deferral, which is a common arrangement where you have taxpayers who can’t meet their tax obligations,” Premier Steven Miles said at an impromptu press conference, as reported by ABC.
“But we wouldn’t entertain that arrangement while executives paying themselves performance bonuses.”
