Coronado Global Resources refinances asset-based lending facility
Coronado Global Resources, a metallurgical coal producer, has announced the refinancing of its existing asset-based lending (ABL) facility, entering a binding commitment with Highland Park XII, an affiliate of Oaktree Capital Management.
This strategic move is part of a broader liquidity management plan aimed at bolstering the company’s financial position amidst sustained low metallurgical coal prices.
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The three-year ABL facility, secured against receivables and inventory, will provide Coronado with an initial cash injection of $75m (A$115.56m).
The new ABL facility offers Coronado the flexibility to draw down the remaining $75m in increments of at least $25m over the next twelve months.
These funds will be committed for the entire three-year term, ensuring ongoing liquidity and working capital support.
Finalisation of the ABL facility is contingent upon the completion of long-form documents and approvals from both Coronado’s Board of Directors and Oaktree’s Investment Committee.
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By GlobalDataDrawdowns will be subject to standard conditions, including an independent assessment of the borrowing base.
This financial restructuring complements Coronado’s ongoing projects such as the Mammoth and Buchanan expansions, which are progressing on schedule and within budget.
These projects are expected to boost sales volumes, reduce capital expenditure in the latter half of the year and achieve sustainable operating cost savings.
By the end of May 2025, Coronado had allocated approximately $140m in capital expenditure, with only $80m remaining for the June–December period.
The successful completion of the expansion projects is expected to increase run-rate production to 1.5–2 million tonnes (mt) for Mammoth and 1mt for Buchanan by the end of 2025.
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