• Bally's offers non-binding proposal to provide A$250m capital raise
• Bally's would underwrite the entire capital raise, but allow Star's existing shareholders to participate
• Bally's proposal aims to preserve value for Star's stakeholders, including regulators, creditors and employees

The Star Entertainment Group Ltd (ASX: SGR) has received an unsolicited, non-binding funding proposal from Bally's Corporation. Bally's Proposal outlines a possible transaction where Bally's would provide 'a capital raise of at least A$250 million, pursuant to which The Star would issue convertible notes subordinated to The Star's existing senior lenders. The convertible notes would be convertible into at least 50.1% of The Star's fully diluted ordinary shares. Bally's would underwrite the entire amount of the capital raise, but would be supportive of providing The Star's existing shareholders the right to participate in a significant portion of the offering on a pro rata basis.' Bally's is a global casino-entertainment company with a growing omni-channel presence, and it believes its approach of new long-term capital plus operational track record will unlock the best alternative for The Star and its shareholders. The Board of The Star will review Bally's Proposal, but there is no certainty that it will be progressed.