Bally's Corporation enters into a binding agreement with The Star for AUD 300 Million Strategic Capital Investment via Convertible Notes and Subordinated Debt
Summary
PROVIDENCE, R.I., April 7, 2025 /PRNewswire/ -- Ballys Corporation (NYSE: BALY) ("Ballys" or the "Company") today announced that it has entered into a binding term sheet with The Star Entertainment Group Limited (ASX: SGR) ("The Star") comprising a multi-tranche issuance of subordinated convertible notes and subordinated debt (together the "Notes") with an aggregate principal value of AUD $300 million (approximately USD $187 million1) (the "Transaction").The Star is an ASX-listed, leading Australian entertainment and gaming company, operating casino and resort properties in Sydney, Brisbane and the Gold Coast. Upon conversion of the Notes, additional and/or replacement directors will be appointed to ensure majority Board representation, subject to regulatory approvals.Under the binding term sheet executed on 6 April 2025, Ballys will invest AUD 300,000,000 (approximately USD $187 million1) through a combination of subordinated convertible notes and subordinated debt, in two tranches (refer below).The Notes are convertible into shares such that Ballys will own approximately 56.7% of The Stars fully diluted share capital post-conversion, Tranche 1 Notes: Tranche 1A: Convertible into shares representing 9.71% of The Stars pre-issue capital AUD (approximately USD 1) Tranche : Convertible into shares representing 4.85% of The Stars pre-issue capital Subordinated Debt of AUD (approximately USD 1). The issuance and conversion of certain tranches of Notes is subject to receipt of shareholder approval, regulatory approvals, execution of long-form transaction documents and certain consents.The binding term sheet is attached to this release.MA Moelis Australia and Ord Minnett Limited acted as Joint Financial Advisors to Ballys with Kirkland & Ellis LLP and MinterEllison acting as joint legal counsel, and Senet as Australian regulatory counsel.The Star Entertainment Group Limited (ASX: SGR) is an ASX-listed, leading Australian entertainment and gaming company, operating casino and resort properties in Sydney, Brisbane, and the Gold Coast. The Star is committed to optimising its properties, supporting its communities and capitalising on the opportunities presented by its world-class locations across Australia.The Star is focused on delivering premium tourism, hospitality, and gaming experiences and is actively progressing a strategic transformation to restore its regulatory standing and financial stability.Ballys Corporation (NYSE: BALY) is a global casino-entertainment company with a growing omni-channel presence. Ballys owns and operates 19 casinos across 11 states, along with a golf course in New York and a horse racetrack in Colorado, and holds OSB licenses in 13 jurisdictions in North America.