ABL Corporate Partner Jeremy Leibler led the transaction with Banking & Finance Partner Genevieve Sexton and Litigation Partner Jonathan Milner, supported by Special Counsel Laila De Melo, Lawyer Simone Gould and Law Graduate Noah Lipshut. The team advised on all aspects of the refinancing, as well as strategic considerations in relation to lobbying Bounty Mining shareholders to vote down the recapitalisation transaction proposed by Bounty Mining’s major shareholder, Amaroo Blackdown Investments. ABL also assisted with drafting the various refinancing proposals delivered by QCoal.
As announced by Bounty Mining to the ASX last week, the transaction will provide cash funding of $60 million and a guarantee facility for $30 million. The funds will be used for repaying debts owed to Amaroo Blackdown Investments and XCoal Energy & Resources, as well as for the working capital at the Cook Colliery, and to meet certain obligations at Cook, including the final payment under the asset sale agreement and replacing the rehabilitation bond and the royalty liability for the Cook Colliery. As part of the deal, QCoal will also enter into a coal offtake agreement with Bounty Mining’s subsidiary.
Partners Genevieve Sexton and Jeremy Leibler commented on the successful result for the client: “We are very pleased with this outcome for QCoal, particularly as we were in involved in all aspects of the transaction (from strategic advice, to lobbying Bounty Mining shareholders and to negotiating and documenting the refinancing).”
ABL worked alongside Melbourne-based corporate advisers SLM in relation to the transaction.