Bowen Coking Coal (ASX:BCB) has executed agreements with its senior and junior lenders, Taurus Mining Finance No. 2, and New Hope Corporation amending the loan facilities as announced 19 September 2024.
As part of the $70 million equity raise announced 1 November, Bowen received a $15.3 million equity commitment from Taurus to set off against the aggregate principal balance owing to Taurus under the senior secured facility agreement, subject to approval from the Australian Federal Treasurer.
Bowen received a further $2 million equity commitment from New Hope to set-off against interest prepayments to New Hope in respect of the bilateral facility agreement.
Chief Executive Officer Daryl Edwards says execution of the revised debt agreements provides Bowen Coking Coal with debt repayment headroom on the back of securing additional liquidity for the business during the transition from Ellensfield South to Plumtree North.
Further material amendments include extension of tenor, deferment of principal amortisation in respect of the Taurus facility so that the next payment is due at the earlier of the end of March 2025 and the sale of the Isaac River Project and final repayment occurs in September 2026, in return for a “modest” increase in interest margin and royalties payable to Taurus effective from 1 October.
In respect of the New Hope facility, amendments include extension of tenor, substitution of obligations to New Hope with cash or equity (subject to shareholder approval) and a decrease in interest margin payable.
Grant Samuel acted as financial advisor and Gilbert + Tobin as legal counsel in assisting the company on the debt amendments.
Plumtree North is planned to provide run-of-mine coal for the next five years.
Write to Adam Orlando at Mining.com.au
Images: Bowen Coking Coal
