PERTH (miningweekly.com) – ASX-listed Coronado Global Resources has announced a A$250-million capital raise to repay its debt.
The fully underwritten offer will consist of an initial A$145-million share placement to institutional investors, priced at 60c a share, representing a 27.3% discount to the company’s last closing price on August 11.
A fully underwritten two-for-eleven entitlement offer will raise a further A$105-million.
Coronado on Tuesday said that the offer would result in some 417-million new Chess Depositary Interests being issued, equivalent to 43% of the company’s common stock.
At the completion of the offer, the company’s pro forma total liquidity is expected to increase to $325-million, while its pro forma net leverage is expected to decrease, providing the company with resilience in the current economic environment.
In addition to the capital raise, Coronado has secured a waiver extension from the syndicated facilities agreement lending syndicate (SFA) to waive compliance with the financial covenants, and extending the existing waiver period by some seven months.
The SFA is a $550-million revolving credit facility and a $130-million revolving bank guarantee, which matures in February 2023.
As part of the waiver extension agreement, Coronado’s credit facility limit of the SFA will reduce by three steps of $25-million each in February, May and August of 2021.