Kestrel Coal Resources has raised a US$860m loan to refinance debt that backed Adaro Energy's and EMR Capital’s A$2.25bn (US$1.51bn) acquisition in 2018 of an 80% stake in the Kestrel Coal mine, reports Refinitiv LPC. ANZ, Bank Negara Indonesia, Bank Mandiri, CIMB Bank, CTBC Bank, DBS, and OCBC funded the latest five-year loan.
In August 2018, Indonesia’s Adaro Energy and Australian private equity firm EMR Capital raised a US$1.69bn senior borrowing for the acquisition from Rio Tinto. ANZ, CIMB, DBS, MUFG, OCBC, Standard Chartered and SMBC were the mandated lead arrangers and bookrunners of the senior loan, which attracted seven other lenders.
That debt comprised a US$1.16bn amortising term loan, a US$150m revolving credit facility and a US$54m bonding facility comprising unfunded environmental bonds. It pays an interest margin of 375bp over Libor. South Korea's Meritz Securities provided a US$325m mezzanine loan, which also has a five-year maturity and pays an interest rate of around 12%.
In early 2020, Adaro and EMR sought proposals from lenders for a refinancing, but the transaction did not materialise due to market volatility from the fallout of the coronavirus pandemic, according to LPC. Mitsui & Co retained its 20% shareholding in the Kestrel coking coal mine, in Queensland’s Bowen Basin.
