Narrative
Full Description
Project narrative
On September 11, 2019, financial close was reached on a deal in which a syndicate of eight banks — including the Bank of China (BOC) — entered into a $806.41 million USD syndicated facility agreement with Coronado Global Resources Inc. for the Coronado Global Resources 2019 Refinancing Project. The $806.41 million USD syndicated facility was divided into three tranches: a $350 million USD revolver tranche known as Facility A, with a maturity period of three years and six months and a final maturity date of to February 15, 2023, a $256.41 million USD guarantee tranche known as Facility B, with a maturity period of three years and six months and a final maturity date of to February 15, 2023, and a $200 million USD revolver tranche, known as Facility C, with a maturity period of three years and six months and a final maturity date of February 15, 2023. The funds under Facility A and C could be borrowed for a period of one, two, three or six months, with the interest rate is set at the commencement of each period; the borrower had the option to repay the loan or extend any amount for another period, so long as it the period did not extend beyond the termination date. see pg.64 of "Coronado Global Resources Inc. Financial Report for the twelve month period ending 31 December 2019" and "Coronado Global Resources Refinancing"). The facility was secured by (i.e. collateralized against) a fixed and floating charge over Coronado's assets. This loan was an amendment of Coronado's existing multi-currency revolving syndicated facility agreement, signed September 15, 2018; the amendment extended the termination date by 12 months to February 15, 2023 and added Facility C. The proceeds of the amended loan were to used by the borrower to refinance its existing debt; as of December 31, 2019, $464.0 million USD had been drawn down to partially finance distribution to shareholders and for other working capital purposes. BOC contributed $67.16 million USD to the $350 million USD revolver tranche. In addition to BOC, the following lenders contributed the following amounts to this loan syndicate: Sumitomo Mitsui Banking Corporation (SMBC) ($65.00 million USD), HSBC Bank Plc ($50.00 million USD), National Australia Bank Limited (NAB) ($33.58 million USD), Australia and New Zealand Banking Group (ANZ) ($33.58 million USD), DBS Bank ($33.58 million USD), Citibank ($33.58 million USD), and Westpac Banking Corporation ($33.58 million USD). Record ID#94526 captures BOC's $67.16 million USD to the $350 million USD revolver tranche. BOC contributed $42.28 million USD to the $200 million USD revolver tranche. In addition to BOC, the following lenders contributed the following amounts to this loan syndicate: SMBC ($34.00 million USD), HSBC ($18.00 million USD), NAB ($21.14 million USD), ANZ ($21.14 million USD), DBS Bank ($21.14 million USD), Citibank ($21.14 million USD), and Westpac ($21.14 million USD). Record ID#94527 captures BOC's $42.28 million USD to the $200 million USD revolver tranche. BOC contributed $65.34 million USD to the $200 million USD revolver tranche. In addition to BOC, the following lenders contributed the following amounts to this loan syndicate: HSBC ($32.67 million USD), NAB ($27.72 million USD), ANZ ($32.67 million USD), DBS Bank ($32.67 million USD), Citibank ($32.67 million USD), and Westpac ($32.67 million USD). On December 23, 2019, the $256.41 million USD ($370 million AUD) guarantee tranche was reduced to $130 million AUD due a change in the Queensland State Government’s method of managing the risk of mining companies that fail to meet obligations considering environmental performance and mine closures. Due to the outbreak of the COVID-19 pandemic and its ensuing effect on coal markets, on May 25, 2020, Coronado entered into an agreement with the lenders to waive compliance with certain financial covenants for the period until February 28, 2021. Then, on August 12, 2020, Coronado entered another waiver letter with the lenders to extend the waiver of certain financial covenants to September 30, 2021, conditional upon the successful completion of a minimum equity raising; additionally, the waiver extension agreement included a provision to permanently reduced the syndicated facility by $75 million USD in $25.0 million USD increments in February, May, and August 2021. During 2020, Coronado borrowed $205.0 million USD under ths facility for working capital and corporate purposes.
Staff comments
1. Coronado Global Resources Inc. is an Australia-based global producer, marketer and exporter of full range of Met coals. It has significant business in the Bowen Basin in Queensland, Australia and the Central Appalachian region of the United States. 2. AidData does not consider bank guarantee facilities to be projects to be financial flows; this is why it has not created a record for BOC's contribution to the guarantee facility. 3. AidData has not confirmed where BOC was an original lender during the September 15, 2018 original loan. For now, it has assumed the September 11, 2019 amendment was its first instance of participation in this syndicated facility. This issue merits further investigation.