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:
Ph: 03 9244 9644 or 0419 032493
SLM advises that it has completed an Independent Valuation Report for ASX Listed Elixinol Global Limited (ASX EXL).
Under Australian Securities Exchange (“ASX”) Listing Rule 7.1A.3 where equity securities are issued for non-cash consideration (i.e. the acquisition of an asset), the eligible entity must provide for release to the market a valuation of the non-cash consideration that demonstrates that the issue price of the securities complies with the Listing Rule 7.1A.3. The rule requires that the eligible entity must demonstrate that the deemed issue price of the securities issued in consideration for the acquisition of the asset is no lower than 75% of the volume weighted average share price (“VWAP”) of the securities over the 15 days during which trades in the securities were recorded immediately before the securities are issued.
A copy of the report can be found here: https://www.asx.com.au/asxpdf/20190424/pdf/444hwsnrxq07rr.pdf
For further information, please contact Barry Lewin or Kuo ning Ho from SLM Corporate on 03 9244 9644.