Whitehaven Coal (ASX:WHC) has made an institutional offer worth US$900 million ($1.26 billion).
Whitehaven will use subsidiary Australian MetCoal Financing to offer senior secured notes to “qualified” institutional buyers, both in the US and “certain persons” outside of the US.
Whitehaven and “certain wholly owned” subsidiaries will guarantee the notes, which will be issued in two tranches.
The first US$450 million ($630 million) tranche will mature in 5.5 years, ending 22 October 2031. The tranche also has a 6.25% coupon rate, with interest payable from 22 October 2026 and twice a year thereafter on 22 April and 22 October.
The second US$450 million ($630 million) tranche will mature in eight years, ending 22 April 2034. This tranche has a 6.75% coupon rate that pays interest twice a year on 22 April and 22 October.
Proceeds will be used to repay an outstanding balance from Whitehaven’s US$1.1 billion ($1.5 billion) acquisition term loan facility and for other general corporate purposes.
Whitehaven Coal is a coal producer with assets mainly in New South Wales and Queensland.
Write to Richard Szabo at Mining.com.au
Images: Whitehaven Coal
