Coronado enters $230m asset-based lending facility with Oaktree
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The news: Metallurgical coal producer Coronado Global Resources has entered into a binding commitment for a USD150 million ($230 million) asset-based lending facility with US asset manager Oaktree Capital Management.
The numbers: Coronado said its subsidiary Coronado Finance will refinance its existing asset-based lending facility, with the company drawing an initial USD75 million.
The remaining USD75 million is available to be drawn down in minimum USD25 million increments for a further 12 months, the company said.
The context: Coronado said the three-year facility provides an immediate liquidity solution for the company through a USD75 million cash injection, and provides further funding flexibility for future working capital needs.
The transaction forms part of Coronado's broader liquidity and balance sheet management program, aiming to improve its ability to withstand ongoing low metallurgical coal prices.
What they said: "Entering into this transaction with Oaktree is an important first step in our strategy to stabilise and strengthen our financial position," said Coronado's chief financial officer Barrie Van der Merwe.
"It reflects a clear confidence from a credible lender in the underling value of our asset base and business fundamentals."
The source: ASX
