Stanmore Resources (ASX:SMR) - Chairman, Dwi Suseno
Chairman, Dwi Suseno
Source: Kellogg-HKUST Executive MBA Program
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  • Stanmore Resources (SMR) executes definitive documentation with certain financiers for its US$625 million (A$845 million) debt facility
  • It follows a deal to acquire BHP’s 80 per cent stake in BHP Mitsui Coal (BMC) for US$1.2 billion (A$1.68 billion), which will be partly funded by the facility
  • The debt facility is a senior-secured, first lien amortising loan note facility which matures five years from first utilisation
  • It will have a fixed cash interest rate of 11.5 per cent, paid quarterly in arrears, and will be guaranteed and secured against all assets of Stanmore
  • Shares are trading 3.51 per cent lower today at $1.10 each

Stanmore Resources (SMR) has executed definitive documentation with certain financiers for its US$625 million (A$845 million) debt facility.

As previously announced, Stanmore has entered an agreement to acquire BHP’s 80 per cent interest in BHP Mitsui Coal (BMC) for a total of US$1.2 billion (A$1.68 billion), by way of purchasing all of the shares in Dampier Coal. Part of the consideration will be funded by the debt facility.

The lenders will be financiers from Varde Partners, Canyon Capital Advisors LLC, Farallon Capital Asia, and other credit funds.

The debt facility is a senior-secured, first lien amortising loan note facility which matures five years from first utilisation.

It is guaranteed and secured against all assets of Stanmore. Subject to any necessary financial assistance approvals, the debt facility will also be guaranteed and secured against the shares purchased from Dampier Coal including its interest in BMC.

The facility is non-recourse to Stanmore.

The debt will have a fixed cash interest rate of 11.5 per cent, paid quarterly in arrears.

The company will also be subject to cashflow sweep in which excess cashflow starting at 25 per cent and rising up to 37.5 per cent will be prepaid towards the loan.

Shares are trading 3.51 per cent lower today at $1.10 each at 2:20 pm AEDT.

SMR by the numbers
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