As StreetTalk first reported earlier this year, Oaktree spent several weeks discussing possible funding plans with Star, exploring a structure that would result in injecting hundreds of millions of dollars in capital into the embattled casino giant. bottom. Ultimately, the star decided to go a different direction, raising money from investors, including Bruce Matheson, whose fortune stands at $2.13 billion, according to Financial Review’s wealthy list.
Oaktree also has a strong presence in the offshore gaming sector, acquiring poker machine developer Interblock last year and J Corporation, which previously owned Gaming Group.&J Ventures and Cannery Casino Resort.
It remains unclear who will be the other party to the refinancing talks. Blackstone’s credit department was also considering whether to get involved in an industry-wide review, according to people familiar with the matter. They are not seriously or actively considering joining at this time, the sources added.
In July, Street Talk reported that refinancing terms had been distributed not only to Oaktree and Bain, but also to Apollo Asset Management and private equity firm Cerberus Capital Management. They were returned with comments on where the parties saw the pricing, margins they could give, and an estimate of how much debt they could offer.
Star had $1.3 billion in total debt at the end of December, including $685 million in bank debt and $584 million in private placements. His equity raising reduced net debt from $1.1 billion to $341 million. But investors have since expressed concern that entering the bond market may not be enough and more capital may be required.
