Paringa Resources Limited has advised that Tribeca Global Resources Credit Pty Limited (Tribeca) has agreed to provide a term loan facility (TLF) of US$56 million (debt financing) for the purpose of refinancing existing debt, expansion development of the Poplar Grove coal mine and working capital.
The Tribeca debt financing is an attractive funding package that provides low overall cost, low shareholder dilution and flexibility in relation to early repayment. Importantly, once the facility is fully drawn Paringa will be funded to immediately begin the expansion of production to 2.8 million tpy at Poplar Grove, previously planned to be funded out of free cash flow.
Debt financing terms have been approved by Tribeca's investment committee with funding subject to completion of remaining due diligence, completion of documentation and satisfaction of conditions precedent typical for financings of this nature. Subject to satisfaction of these remaining conditions, Paringa expects to draw upon the TLF by 30 April 2019.
The company's existing lender Macquarie Bank Limited is supportive of the refinancing and has committed to providing the final US$6.7 million tranche under the Macquarie facility to the company, subject to repayment of the US$6.7 million in full by 30 April 2019.
Paringa's Managing Director, Egan Antill, said: "We are very pleased to have mandated Tribeca to arrange a highly competitive and flexible term loan facility. The debt financing proposal from Tribeca is a great endorsement of the Poplar Grove coal mine and significant milestone for Paringa in accelerating production to 2.8 million tpy."
Read the article online at: https://www.worldcoal.com/coal/20032019/paringa-secures-us56-million-debt-facility-to-fund-poplar-grove-mine-expansion/