• $300 million investment from Bally's Corporation
• Investment to be made in two tranches, subject to shareholder and regulatory approvals
• Bally's to acquire up to 56.7% stake in The Star on a fully diluted basis

The Star Entertainment Group Limited (ASX: SGR) has announced that it has entered into a binding term sheet with Bally's Corporation (Bally's) for a $300 million strategic investment. The investment will be made in two tranches:Tranche 1:- $100 million expected to be paid to The Star on or before 9 April 2025, subject to receipt of required consents from The Star's senior lenders.- This tranche includes $22.3 million in convertible notes (Tranche 1A), $11.1 million in convertible notes (Tranche 1B), and $66.6 million in subordinated non-convertible debt (Tranche 1C).Tranche 2:- $200 million to be paid to The Star following shareholder approval and regulatory approvals.- When aggregated with Tranche 1, the Tranche 2 notes will be convertible into 56.7% of The Star's issued capital on a fully diluted basis.The investment is subject to several approvals, including shareholder approval, Foreign Investment Review Board approval, and probity approvals in New South Wales and Queensland. The Star is targeting to hold a shareholder meeting in late June 2025 to vote on the transaction.The Star's Board intends to unanimously recommend the transaction to shareholders, in the absence of a superior proposal and subject to an independent expert concluding that the transaction is in the best interests of shareholders.

The Star has not provided any high-importance, price-sensitive forward-looking financial metrics or guidance in the announcement.