Sev.en, strikes add new wrinkles to WICET's $US2b refi
WICET now faces industrial action and a new majority owner of one of its shippers, while one of WICET's lenders sold out due to ESG concerns
The intel: Industrial action and ownership changes have emerged as new factors in the Wiggins Island Coal Export Terminal's USD2 billion debt stack refinancing, a process which looms as a key test of market appetite for exposure to coal.
The numbers: Capital Brief reported last month that the Queensland coal port operator had begun talks for an early refinancing of around USD2 billion in debt, which is split almost evenly between senior loans held by banks and mezz debt held by IFM Investors.
WICET is owned by coal companies Glencore, Coronado Global Resources and Yancoal.
The context: Czech coal investor Sev.en Global Investments bought a majority stake in ASX-listed coal play Coronado last week.
Sev.en's acquisition of the 51% stake from Houston-headquartered private equity player The Energy and Minerals Group (EMG) must first pass US and Australian regulatory approvals, which are expected to be completed in the first quarter of 2024, according to a 27 September research report from UBS.
