Whitehaven Coal has secured a new US$600 million senior secured syndicated facility, another step in the company’s efforts to enhance its liquidity position.
The new financing package carries a 4.5-year tenor and includes a US$475 million term loan and a US$125 million revolving credit facility.
The company has also received bank credit approvals for an additional US$150 million, providing the option to further upsize the facility as part of its broader refinancing strategy.
According to Whitehaven, the facility attracted robust support from lenders, which the company attributes to confidence in its disciplined financial management, strong credit profile, and the successful integration of its recently acquired Daunia and Blackwater metallurgical coal operations.
Whitehaven CEO Paul Flynn said: “The successful execution of the new senior secured syndicated facility, with a headline rate of around 6 per cent, further strengthens our funding flexibility, extends our maturity profile, materially reduces our funding cost and improves our weighted average cost of capital.
“With Whitehaven’s strengthened credit profile and successful integration – and initial improvements – of the Daunia and Blackwater metallurgical coal operations, we are focused on refinancing our acquisition credit facility and establishing a capital structure with more diverse, longer tenor and lower cost debt facilities.”
The proceeds from the new facility are earmarked to repay a portion of Whitehaven’s existing US$1.1 billion acquisition term loan and replace its current US$100 million general corporate purpose revolving credit facility.
The company stated that the transaction reflects its prudent approach to capital management and strong cash flow generation capabilities.
Moving forward, Whitehaven plans to focus on completing the refinancing of the remaining balance of its acquisition credit facility, a move expected to continue delivering value for shareholders.
The completion of this new facility remains subject to customary closing conditions. The company’s improved liquidity and reduced funding costs are expected to provide the company with increased operational flexibility in the evolving energy and resources landscape.