All posts in Financial & Strategic Consulting

10 Oct

SLM advises QCoal on successful refinancing proposal for Bounty Mining Limited (ASX: B2Y)

In Financial & Strategic Consulting,News by SLM / October 10, 2019 / 0 Comments

SLM Corporate is pleased to advise that it has acted as corporate adviser to QCoal Group in relation to a $90 million refinancing proposal for ASX-listed coal miner Bounty Mining Limited (ASX: B2Y).

Bounty was the subject of an existing recapitalisation proposal (involving a convertible note) from its existing debt financier and major shareholder, Amaroo Blackdown, which was to be voted on by Bounty shareholders at a General Meeting.  SLM assisted QCoal in submitting several alternate, superior refinancing proposals to Bounty (which were rejected by the Company’s board) and in engaging with and lobbying Bounty’s shareholders to seek their support in voting down the Amaroo proposal.

Bounty shareholders overwhelmingly voted against the Amaroo proposal at the General Meeting, prompting Bounty’s Board to enter into negotiations and finalise a funding agreement with QCoal instead.  Binding facility agreements were prepared and finalised within a tight timeframe, in order to alleviate Bounty’s financial pressures and to meet immediate funding needs.

QCoal’s $90 million funding package, comprising a senior-secured multi-tranche cash finance and guarantee facility, delivers greater funding at a cheaper cash cost to Bounty compared with the Amaroo proposal, and avoids any dilution of Bounty’s shareholders.  As part of the agreement, QCoal has the right to nominate and appoint up to 49% of Bounty board members.  In addition, Bounty will enter into a new 5-year coal offtake agreement with QCoal.

SLM worked closely with Arnold Bloch Leibler who acted as legal advisers to QCoal in relation to the matter.

For further information in relation to the above, please contact:

Barry Lewin
Managing Director
Ph: 03 9244 9644 or 0419 032493
Email: barry.lewin@slmcorporate.com.au

 

05 Sep

SLM Corporate advises the Northern Land Council and traditional native title holders on a giant prawn farm project ILUA in the Northern Territory

We are delighted to have acted as economic and financial advisers to the Northern Land Council and traditional native title landowners in the negotiation of a long term Indigenous Land Use Agreement covering all phases of development and production of the $2 billion Sea Dragon prawn farm on Leguna Station, near Kununurra, East Kimberley.  When completed, the project sponsor Seafarms Group (ASX: SFG) will be the largest tiger prawn producer in the world, generating significant financial and other benefits to traditional owners.

SLM’s role included a detailed economic assessment of the project, economic modeling, benchmarking and advice on royalties and other financial benefits to the traditional native title landowners, assistance with the negotiations, and the drafting of the relevant financial benefits clauses in the ILUA.

Our indigenous economic advisory practice has enjoyed a busy 12 months, with a number of significant engagements, including advice to the Kokatha Aboriginal Corporation on Oz Minerals’ Carrapateena Project, advice to the Wajarri Yamatji on the Commonwealth Square Kilometre Array Project, advice to the Central Land Council on the Lake Mackay Gold and Base Metals Project and advice to Taungurung Association on its compensation negotiations with the State of Victoria.

For further information, please call Barry Lewin on 03 92449644.

03 Jul

SLM advises YUM! Brands and its Australian subsidiary KFC on a significant store divestment program in Australia

SLM is pleased to have advised YUM! Brands and its Australian subsidiary KFC on the divestment of a significant number of company owned stores in Australia to a range of existing franchisees.  This project was part of a global store divestment initiative for YUM!

Collins Food Group was a major buyer, acquiring 28 of these stores for $110 million.

For further information please contact SLM Managing Director Barry Lewin.

15 Jun

Majority of Spicers security holders (98%) vote in favor of the capital restructure

Spicers (ASX:SRS) security holders vote to approve the Proposal to unify and simplify the capital structure, with overwhelming majorities (98% of ordinary shareholders and 99% of SPS unitholders)

SLM is pleased to advise that it has acted as Corporate Adviser to Spicers Limited in relation to a Proposal to simplify Spicers capital structure.  Under the Proposal, Spicers will acquire SPS Units that it does not already own, in exchange for the issue of Spicers ordinary shares as consideration.  This Proposal resolves a long-standing intractable problem of finding an acceptable resolution, which has stood in the way of the unification and simplification of the Spicers capital structure.

At general meetings held by SPS unitholders and ordinary shareholders on 15 June 2017, both sets of holders approved the Proposal with overwhelming majorities (98% of ordinary shareholders and 99% of SPS unitholders).  These approvals represent a critical milestone towards the successful implementation of the proposed Trust Scheme, which is expected to occur in late June following a customary second court hearing and suspension of ASX trading of SPS units.

Prior to SLM’s engagement, there had been several years of protracted negotiations between Spicers and SPS unitholders and several unsuccessful attempts by both parties to agree on and pursue a re-organisation of Spicers’ capital structure.  SLM was appointed by Spicers in late October 2015 to assist in devising, negotiating and implementing a mutually acceptable transaction that would finally deliver a resolution to this issue.  This has culminated in the current Trust Scheme.

-->