SGR -8.43%: the casino operator was back trading today after completing the bulk of a recapitalization raise that will vastly improve the balance sheet. Shareholders are able to buy 1 new share at 60c for every 1.65 held with the Institutional component of the entitlement offer raising $565m on 67% of rights taken up. The retail component will raise a further $185m, while Barclays and Westpac will offer a $450m debt facility to add flexibility to the balance sheet. The end result will see Star pay down all existing debt, clearing the slate as it looks to regain its earnings mojo. There are still concerns from an investment standpoint, an AUSTRAC fine hanging over the company’s head, as well as issues with Queens Wharf, their new Brisbane asset. However, the company said trading conditions have stabilized and the monthly revenue run rate was up 4% in July and August vs June quarter.
MM remains neutral SGR
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