Coronado Global Resources gets $150 million asset-based revolver

By Mary-Katherine Stinson

Lexington, Ky., May 8 – Coronado Global Resources Inc. and its wholly-owned subsidiaries Coronado Finance Pty Ltd. and Coronado Curragh Pty Ltd. on May 8 signed a senior secured asset-based revolving credit agreement for an initial $150 million, according to an 8-K filing with the Securities and Exchange Commission.

The ABL facility includes a $100 million sublimit for the issuance of letters of credit and a $70 million sublimit for a revolving credit facility. Availability under the ABL Facility is limited to an eligible borrowing base, determined by applying customary advance rates to eligible accounts receivable and inventory.

Borrowings under the ABL Facility will bear interest at SOFR for dollar-denominated loans and the BBSB rate plus 280 basis points for Australian dollar-denominated loans.

There is a commitment fee of 98 bps based on the actual daily amount by which the total commitments exceed the sum of the outstanding loans and the outstanding letter-of-credit obligations.

The new ABL facility will mature three years after the closing date, which will be determined once the closing conditions have been satisfied.

Outstanding amounts under the ABL facility are secured by a first-priority lien on the accounts receivable and other related assets and proceeds and products of the guarantors, a second-priority lien on substantially all of the company’s and guarantors’ assets other than the ABL collateral and a featherweight floating security interest over certain assets of the Australian borrower solely in the case of the Australian obligations.

Global Loan Agency Services Australia Pty Ltd is the administrative agent. Global Loan Agency Services Australia Nominees Pty Ltd is the collateral agent.

Coronado Global Resources Inc. is the holding company, and Coronado Australia Holdings Pty Ltd. is the Australian parent.

The company plans to repay and terminate its existing senior secured asset-based revolving credit agreement dated May 12, 2021 with Citibank, NA as administrative agent after the satisfaction of conditions required prior to closing. These include the completion of a field examination by an independent third-party assessor and entering into satisfactory right of entry arrangements for certain Australian ports utilized by the company for coal shipments. The conditions must be satisfied or waived by 60 days after signing.

Coronado Global Resources is a producer of high-quality metallurgical coal. It is based in Brisbane, Australia.

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