Australian casino operator The Star has reportedly changed its key financial advisor after the board shake-up that accompanied its lifeline investment by Bally’s Corp. and Investment Holdings.
According to the Australian Financial Report, The Star Entertainment Group split with its long-tie banking group UBS after the American casino group and Mathieson family-backed investment fund assumed the controlling stake in the Australian gaming company in December.
The AFR cites individuals familiar with the arrangements but unauthorized to speak publicly.
UBS has been replaced with MA Moelis Australia’s restructuring team, which had advised Bally’s ahead of its investment in Star.
AFR indicates that MA’s first priority will be to rule out yet another refinancing of Star’s debt facilities, a move which sources told Street Talk UBS was already commencing before Christmas.
The ASX-listed operator currently has nearly AU$346 million ($242.11 million) in borrowings across a syndicated facility due to mature in December of next year.
The group is also facing a AU$400 million ($279.9 million) fine from Australia’s financial watchdog AUSTRAC. Star has attempted to negotiate the figure closer to AU$100 million ($69.97 million).
The Star saw significant management changes and cost-cutting measures after the Bally’s/Investment Holdings investment, including the appointment of Bally’s Chairman Soo Kim as Chairman, Bruce Mathieson Jr. as CEO (following Steve McCann’s resignation) and other board changes.
The group also indicated it would close its corporate office, cut jobs and shift more responsibility to each individual property under its portfolio (Sydney, Brisbane and the Gold Coast).
