Photo by: Bloomberg
PERTH (miningweekly.com) – Coal miner Stanmore Resources has secured a $625-million debt facility with financiers as part of its financing solution for the acquisition of an 80% interest in BHP Mitsui Coal (BMC).
Diversified miner BHP in November of last year inked a share sale and purchase agreement to divest of its 80% interest in the BMC metallurgical coal joint venture (JV) in Queensland.
Under the agreement, Stanmore would acquire 100% of Dampier Coal from BHP, which holds its interest in BMC for $1.35-billion. The purchase price comprises $1.1-billion cash on completion, $100-million in cash six months after completion and the potential for up to $150-million in a price-linked earnout payable in the 2024 calendar year.
Stanmore said at the time of the acquisition that part of its consideration for BMC would be funded by way of a $625-million, five-year debt facility.
The ASX-listed miner on Friday noted that the debt facility now secured from financiers would have an interest rate of 11.5% a year, paid in quarterly arrears, commitment fees of 3%, and a non-call period of 24 months after the first utilisation date, with no pre-payment penalties for early repayments after this date.
The sale of BMC is targeted for completion in the middle of 2022, and BHP will continue to operate the assets until the completion of the transaction, and would work with Stanmore to ensure a successful transition of ownership.
BMC comprises the Poitrel and South Walker Creek operations, Red Mountain infrastructure and the Wards Well development in Queensland.