Queensland coal terminal WICET kicks off talks for US$2bn refi
Queensland's WICET has begun talks for an early refinancing in a major test of market appetite for exposure to coal.
Queensland coal port operator Wiggins Island Coal Export Terminal (WICET) has begun talks for an early refinancing of around USD2 billion in debt in a major test of market appetite for exposure to the commodity.
WICET is owned by coal companies Glencore, Coronado Coal and Yancoal. About $1 billion of the debt is senior loans held by banks and not set to mature until 2026. The other half of the exposure is mezzanine debt held mostly by IFM Investors.
One of WICET's lenders recently sold their exposure at between USD0.80 to USD0.85 on the dollar, according to a source with knowledge of the transaction, which indicates a better refinancing environment than in 2015 when Japan's MUFG sold its exposure at USD0.52.
WICET's original lenders in 2014 included Commonwealth Bank of Australia, ANZ, Westpac, SMBC and ING according to documents viewed by Capital Brief. Some lenders, including ING have since sold their exposure to the business.
