- Coronado Global Resources intends to raise around AU$132 million through the issue of new CHESS depository interests (CDIs) at AU$0.45 per CDI.
- The retail entitlement offer is scheduled to close on 25 May 2021 at 5 PM AEST.
- The entitlement offer will be used to resolve the syndicated facilities agreement-drawn balances as well as financing balance sheet liquidity.
Coal producer Coronado Global Resources Inc. (ASX:CRN) announced that the retail entitlement offer booklet, along with a personalised entitlement and approval form, shall be sent to eligible retail security holders today in relation to an underwritten 1 for 4.73 pro-rata accelerated non-renounceable entitlement offer declared to ASX on 4 May 2021.
After experiencing a dip in the initial hours of trading, the CRN stock gained 9.433% intraday and closed at AU$0.580 subsequent to the declaration of the offer.
CRN shares were up by over 9% (Copyright © 2021 Kalkine Media)
Retail Entitlement Offer
The company stated that it was undertaking an entitlement offer of new CHESS Depositary Interests ("CDIs") to raise approximately AU$132 million at AU$0.45 per New CDI.
The retail entitlement offer will expire at 5.00 PM (AEST) on Tuesday, 25 May 2021.
The entitlement offer's joint lead managers, bookrunners and underwriters are Australia Pty Limited and Credit Suisse Limited.
Interesting Read: Coronado missed its FY18 production and net income guidance
Source: © Jirsak | Megapixl.com
The Refinancing Package
The refinancing package, announced on 4 May 2021, includes an offering worth US$350 million of senior secured notes. It also includes a proposed senior secured asset-based revolving credit agreement that offers a multi-currency ABL (asset-based-loan) credit facility in a US$100 million initial aggregate principal amount.
Source: Copyright © 2021 Kalkine Media (Data Source: CRN Announcement 11 May 2021)
After completion, the proposed US$550 million refinancing package is expected to build a capital structure that is resilient across market cycles, with the following benefits to Coronado shareholders.
Here’s how other companies operating in the same space performed on ASX - GTI Resources Limited (ASX:GTR) closed 4.167% lower at AU$0.023, Taruga Minerals Ltd (ASX:TAR) closed 10% lower at AU$0.090, and Avenira Limited (ASX:AEV) ended 6.250% higher at AU$0.008.