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- Coronado Global Resources (CRN) has entered a trading halt while it puts together a refinancing package to improve its capital structure and reduce debt levels
- Through its subsidiary, the metallurgical coal producer will launch an offer of senior secured notes, a credit facility and an equity raise
- Coronado Finance will offer to sell US$350 million (roughly A$449.6 million) worth of senior secured notes
- It will also enter a deal for a US$100 million (roughly A$128.4 million) credit facility
- Following this, it will aim to raise at least US$100 million (roughly A$128.4 million) through a non-renounceable entitlement offer to security holders
- Shares last traded at 59.5 cents on Wednesday, April 28
This morning, Coronado Global Resources (CRN) entered a trading halt while it improves its financial position.
The company’s wholly-owned subsidiary, Coronado Finance has launched an offer of senior secured notes. This is part of a refinancing package which also comprises a revolving credit facility and equity offering.
Refinancing package
Coronado Finance plans to offer to sell US$350 million (roughly A$449.6 million) worth of senior secured notes.
The metallurgical coal producer also plans to enter an asset-based revolving credit agreement for a US$100 million (roughly A$128.4 million) credit facility.
Once this credit facility has closed and the notes offering is completed, the company will launch an entitlement offer.
Coronado will undertake a US$100 million (roughly A$128.4 million) non-renounceable entitlement offering to its security holders through the issue of CDIs.
Use of funds
The coal producer will use the money to repay all outstanding obligations under an existing multi-currency revolving syndicated facility agreement (SFA).
It will also extend Coronado’s debt maturity profile and create a flexible capital structure, but more details will be given in the coming days.
“This package removes the need for periodic financial covenant testing under the SFA and extends our debt maturity well beyond February 2023. It also reduces our net debt levels and provides a more robust platform for growth when market conditions improve,” CEO and Managing Director Gerry Spindler said.
While these details have been released, the company expects to stay in a trading halt until Monday, May 3, at the latest.
Shares last traded at 59.5 cents on Wednesday, April 28.
