Whitehaven's US$900 million acquisition financing bids due end-November
The pricing, in the low double-digit percentage mark, is considered cheap for coal financing, suggesting competition among private credit to supply the loans.
Whitehaven has kicked off the process to lock in funding for the acquisition of the two BHP coal mines it agreed to acquire last month for $5 billion. Indicative bids to provide USD900 million in acquisition funding for the purchase of the Daunia and Blackwater coal mines are due by the end of the month, according to two sources close to the situation.
The funding, which is currently set up as a bridge loan by Bank of America and Jefferies, is being priced at roughly 600-650 bps above the cash rate of 4.35%, implying an interest rate north of 10%, one of the sources told Capital Brief on condition of anonymity.
The pricing is thought to be cheap for coal financing, which can typically reach the mid-teens - suggesting potential competition to supply the loans may have brought the price down.
Bank of America and Jefferies have been casting a wide net among private credit funds in Australia and Southeast Asia. It is expected that funds like Alpha Wave, Farrallon Capital, Värde Partners, and Canyon Capital are in the mix.
