PERTH (miningweekly.com) – Coal miner Coronado Global Resources on Tuesday launched a $100-million equity offer as part of its larger $550-million refinancing package to create financial flexibility.
The ASX-listed company at the end of April announced the $550-million refinancing package, which also included a $350-million offering of senior secured 2026 notes, and a proposed secured asset-based revolving credit agreement providing for a multi currency asset based loan credit facility of $100-million.
The $100-million equity offer announced on Tuesday would be conducted as an accelerated non-renounceable entitlement offer, priced at 45c a new chess depository interest (CDI).
The offer price represented a 24.4% discount to Coronado’s last closing price, and a 21% discount to the company’s theoretical ex rights price.
Coronado would issue 293-million new CDIs, with is some 21.1% of the company’s common stock, on the basis of one new CDI for every 4.73 existing CDIs held.
Coronado’s largest security holder, The Energy & Minerals Group, has provided a binding commitment to take up some 67-million CDIs to maintain a 50.1% interest in the CDIs on issue.
“We are very pleased with the support we have received from investors across the globe after what has been a very difficult period for producers in the metallurgical coal sector,” said Coronado MD and CEO Gerry Spindler.
“This refinancing package will leave Coronado very well placed to deliver value to stakeholders as the global economy continues to recover following the Covid-19 pandemic and the demand for steelmaking coal continues to improve.”
The proposed $550-million refinancing package, when completed, would create a capital structure that was flexible through market cycles, Coronado said, allowing the company to extend its maturity profile, diversify its funding sources, and maintain liquidity for the business along with a reduced net debt level.
Proceeds from the refinancing package will be used to repay monies owned under the company’s current syndicated facilities agreement, which would then be terminated.