The Star shifts financial advisor after Bally’s/Investment Holdings takeover: report
Summary
Australian casino operator The Star Entertainment Group has replaced long-time banking adviser UBS with MA Moelis Australia’s restructuring team following a board shake-up after Bally’s Corp. and Mathieson family-backed Investment Holdings took a controlling stake in December. MA Moelis — which advised Bally’s ahead of the investment — has been engaged to assess The Star’s options, with an immediate priority reportedly to rule out another refinancing of the group’s syndicated debt.
The Star currently has about AU$346 million in borrowings on a facility maturing in December next year, and is also facing a potential AU$400 million fine from regulator AUSTRAC (it has sought to negotiate the penalty down closer to AU$100 million). The change in adviser follows significant management and cost-cutting moves, including Soo Kim being appointed chairman and Bruce Mathieson Jr. named CEO, plus plans to close the corporate office and shift responsibilities to individual properties.
Key Points
- The Star has ended its long-standing relationship with UBS and appointed MA Moelis Australia’s restructuring team as its financial adviser.
- MA Moelis previously advised Bally’s ahead of its investment in The Star and will prioritise ruling out a further debt refinancing.
- The group carries roughly AU$346 million in borrowings on a syndicated facility due December next year.
- The Star faces a potential AU$400 million AUSTRAC fine; management has requested a reduction towards AU$100 million.
- Recent corporate changes include Bally’s chairman Soo Kim appointed as The Star’s chairman, Bruce Mathieson Jr. becoming CEO, job cuts, closure of the corporate office and decentralisation of responsibilities to properties.
Context and Relevance
The adviser switch is a direct consequence of the change in control after Bally’s/Investment Holdings’ investment and underscores a broader restructuring and cost-control push at The Star. For investors, creditors and industry watchers, the move signals tighter oversight from new stakeholders and a focus on stabilising balance-sheet risk rather than pursuing fresh refinancing. It also happens against the backdrop of major regulatory exposure (AUSTRAC) that could materially affect the group’s cash position and strategic options.
Why should I read this?
Short version: if you follow Australian gaming, corporate turnarounds or debt risk, this matters. The adviser swap and new board moves show who’s calling the shots now and what the likely priorities are — stabilise debt, cut costs and handle a big regulatory headache. Saves you digging through filings and press releases.