08:06 AM EDT, 04/07/2025 (MT Newswires) -- Bally's (BALY) said Monday it has entered into a binding term sheet to invest 300 million Australian dollars ($181.2 million) in Australia's Star Entertainment through a multi-tranche issuance of subordinated convertible notes and subordinated debt.

Upon conversion of the notes, Bally's would own up to about 56.7% of the diluted share capital of Star, assuming it subscribes for 100% of the notes, the company said.

Star's current major shareholder, Investment Holdings, may also subscribe for a portion of the notes, potentially reducing the stake held by Bally's, the company said.

Bally's said it will invest in and partner with Star with the aim of revitalizing Star's casino businesses by working with regulators and stakeholders to support a turnaround.

The deal is subject to Star shareholder and regulatory approvals, the company said. Bally's will name an observer to Star's board until a shareholder meeting expected in coming months, the company said.

Bally's said it has the funds available for the transaction.