v3.25.2
Interest Bearing Liabilities
 6 Months Ended
Jun. 30, 2025
Interest Bearing Liabilities [Abstract]  
Interest Bearing Liabilities
9.
 
Interest Bearing Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following is a summary of interest-bearing liabilities
 
at June 30, 2025:
 
(in US$ thousands)
June 30, 2025
December 31, 2024
Weighted Average
Interest Rate at
June 30, 2025
Final
Maturity
9.250
% Senior Secured Notes
$
400,000
$
400,000
9.99
%
(2)
2029
ABL Facility
75,000
—
15.00
%
2028
Loan - Curragh Housing Transaction
25,012
24,472
14.14
%
(2)
2034
Discount and debt issuance costs
(1)
(11,226)
(12,165)
Total
 
interest bearing liabilities
488,786
412,307
Less: current portion
(1,532)
(1,363)
Non-current interest-bearing liabilities
$
487,254
$
410,944
(1)
Relates to discount and debt issuance costs
 
in connection with the Notes and Curragh Housing
 
Transaction (each as defined below)
loan. Deferred debt issuance costs incurred in
 
connection with the establishment of the ABL Facility
 
have been included within
 
"Other non-
current assets" in the unaudited Condensed Consolidated
 
Balance Sheets.
(2)
 
Represents the effective interest rate. The effective interest
 
is higher than the implied interest rate as
 
it incorporates the effect of debt
issuance costs and discount, where applicable.
9.250% Senior Secured Notes due in 2029
As
 
of
 
June
 
30,
 
2025,
 
the
 
aggregate
 
principal
 
amount
 
of
 
the
9.250
%
 
Senior
 
Secured
 
Notes
 
due
 
2029,
 
or
 
the
Notes, outstanding was $
400.0
 
million.
The Notes were issued at par and bear
 
interest at a rate of
9.250
% per annum. Interest on the Notes
 
is payable
semi-annually in arrears on April 1 and October 1 of each year, which began on April 1, 2025. The Notes mature
on October 1, 2029 and are senior secured obligations
 
of the Issuer.
 
The terms
 
of the
 
Notes are
 
governed
 
by an
 
indenture,
 
dated as
 
of October
 
2, 2024,
 
or the
 
Indenture,
 
among
Coronado
 
Finance
 
Pty
 
Ltd,
 
as
 
issuer,
 
Coronado
 
Global
 
Resources
 
Inc,
 
as
 
guarantor,
 
the
 
subsidiaries
 
of
Coronado
 
Global
 
Resources
 
Inc,
 
named
 
therein,
 
as
 
additional
 
guarantors,
 
Wilmington
 
Trust,
 
National
Association, as trustee
 
and priority lien
 
collateral trustee. The
 
Indenture contains
 
customary covenants for
 
high
yield bonds, including,
 
but not limited
 
to, limitations on
 
investments, liens, indebtedness, asset
 
sales, transactions
with affiliates and restricted payments, including payment
 
of dividends on capital stock.
 
Upon the occurrence of a “Change of Control Triggering Event”, as defined in the Indenture as the occurrence of
Change
 
of
 
Control
 
and
 
Rating
 
Decline
 
(each
 
as
 
defined
 
in
 
the
 
Indenture),
 
the
 
Issuer
 
is
 
required
 
to
 
offer
 
to
repurchase the
 
Notes at
101
% of
 
the aggregate
 
principal amount
 
thereof, plus
 
accrued and
 
unpaid interest,
 
if
any,
 
to, but
 
excluding, the
 
repurchase date.
 
The Issuer
 
also has
 
the right
 
to redeem
 
the Notes
 
at
101
% of
 
the
aggregate principal
 
amount thereof,
 
plus accrued
 
and unpaid
 
interest, if
 
any,
 
to, but
 
excluding, the
 
repurchase
date, following the occurrence of
 
a Change of Control
 
Triggering Event, provided that the Issuer
 
redeems at least
90
% of the Notes outstanding prior
 
to such Change of Control
 
Triggering Event. Upon
 
the occurrence of certain
changes in tax law (as described in the Indenture), the Issuer may redeem all of the Notes at a redemption price
equal to
100
% of the principal amount
 
of the Notes to be redeemed
 
plus accrued and unpaid interest,
 
if any,
 
to,
but excluding, the redemption date.
 
The
 
Indenture
 
contains
 
customary
 
events
 
of
 
default,
 
including
 
failure
 
to
 
make
 
required
 
payments,
 
failure
 
to
comply with certain agreements
 
or covenants, failure to
 
pay or acceleration of
 
certain other indebtedness, certain
events of
 
bankruptcy and
 
insolvency, and failure to
 
pay certain
 
judgments. An
 
event of
 
default under
 
the Indenture
will allow either the Trustee or the holders
 
of at least
25
% in aggregate principal amount of the then-outstanding
Notes
 
to
 
accelerate,
 
or
 
in
 
certain
 
cases,
 
will
 
automatically
 
cause
 
acceleration
 
of,
 
the
 
amounts
 
due
 
under
 
the
Notes.
As of June 30, 2025, the Company was in compliance
 
with all applicable covenants under the Indenture.
The carrying
 
value of
 
debt issuance
 
costs, recorded
 
as a
 
direct deduction
 
from the
 
face amount
 
of the
 
Notes,
were $
10.2
 
million and $
11.1
 
million at June 30, 2025 and December 31, 2024, respectively.
ABL Facility
On
 
June
 
18,
 
2025,
 
the
 
Company,
 
Coronado
 
Coal
 
Corporation,
 
a
 
Delaware
 
corporation
 
and
 
wholly
 
owned
subsidiary of the
 
Company,
 
Coronado Finance Pty
 
Ltd, an Australian
 
proprietary company
 
and a wholly
 
owned
subsidiary
 
of
 
the
 
Company,
 
or
 
an
 
Australian
 
Borrower,
 
Coronado
 
Curragh
 
Pty
 
Ltd,
 
an
 
Australian
 
proprietary
company and wholly
 
owned subsidiary of
 
the Company,
 
or an Australian
 
Borrower and, together
 
with the other
Australian Borrower,
 
the Borrowers,
 
and the
 
other guarantors
 
party thereto,
 
collectively with
 
the Company,
 
the
Guarantors and, together
 
with the Borrowers,
 
the Loan Parties,
 
entered into an
 
amendment and restatement
 
of
its
 
existing
 
senior
 
secured
 
asset-based
 
revolving
 
credit
 
agreement
 
in
 
an
 
initial
 
aggregate
 
principal
 
amount
 
of
$
150.0
 
million, or
 
the
 
ABL Facility,
 
with Global
 
Loan Agency
 
Services
 
Australia Pty
 
Ltd, as
 
the
 
Administrative
Agent, Global Loan Agency
 
Services Australia Nominees Pty
 
Ltd, as Collateral Agent,
 
and Highland Park XII
 
Pte.
Ltd., an
 
affiliate of
 
Oaktree Capital
 
Management, L.P.,
 
as Lender.
 
The ABL
 
Facility amended
 
and restated
 
the
Company’s
 
predecessor
 
senior
 
secured
 
asset-based
 
revolving
 
credit
 
agreement,
 
dated
 
May 8,
 
2023
 
(as
amended and
 
restated from
 
time to
 
time), and
 
as a
 
result, The
 
Hongkong and
 
Shanghai Banking
 
Corporation
Limited and DBS Bank Limited, Australian branch, ceased to
 
be lenders.
 
The
 
ABL
 
Facility
 
is
 
a
 
revolving
 
credit
 
facility
 
that
 
matures
 
in
 
2028
 
and
 
provides
 
for
 
up
 
to
 
$
150.0
 
million
 
in
borrowings. Availability
 
under the
 
ABL Facility
 
is limited
 
to an
 
eligible borrowing
 
base, determined
 
by applying
customary
 
advance
 
rates
 
to
 
eligible
 
accounts
 
receivable
 
and
 
inventory.
 
As
 
of
 
June
 
30,
 
2025,
 
the
 
eligible
borrowing base under the ABL
 
Facility was $
97.4
 
million, of which $
75.0
 
million was drawn and
 
$
22.4
 
million was
available and undrawn.
Borrowings under the ABL Facility bear interest at a rate of
15
% per annum and are subject to an interest make-
whole premium, payable on any refinance or prepayment during the
 
first
eighteen months
 
after the closing date.
The undrawn capacity under the
 
ABL Facility remains available for
 
a further
twelve months
 
from the date of this
ABL Facility and is subject to a commitment fee of
9.00
% per annum.
The ABL Facility
 
is subject
 
to financial covenants
 
,
 
including a covenant
 
regarding the
 
maintenance of
 
leverage
ratio and interest coverage ratio, as described in the
 
ABL Facility,
 
commencing on September 30, 2025.
 
The ABL Facility
 
also contains customary
 
representations and warranties and
 
affirmative and negative covenants
including,
 
among
 
others,
 
covenants
 
relating
 
to
 
the
 
payment
 
of
 
dividends,
 
or
 
purchase
 
or
 
redemption
 
of,
 
with
respect to any equity interests
 
of the Company or any
 
of its subsidiaries, covenants relating to
 
financial reporting,
covenants
 
relating
 
to
 
the
 
incurrence
 
of
 
liens
 
or
 
encumbrances,
 
covenants
 
relating
 
to
 
the
 
incurrence
 
or
prepayment of certain debt,
 
compliance with laws, use
 
of proceeds, maintenance
 
of properties, maintenance
 
of
insurance,
 
payment
 
obligations,
 
financial
 
accommodation,
 
mergers
 
and
 
sales
 
of
 
all
 
or
 
substantially
 
all
 
of
 
the
assets of the Loan Parties’ and limitations on changes in the nature
 
of the Loan Parties’ business.
The
 
ABL
 
Facility
 
provides
 
for
 
customary
 
events
 
of
 
default,
 
including,
 
among
 
other
 
things,
 
the
 
event
 
of
nonpayment
 
of
 
principal,
 
interest,
 
fees,
 
or
 
other
 
amounts,
 
a
 
representation
 
or
 
warranty
 
proving
 
to
 
have
 
been
 
materially incorrect when made, failure to perform or observe certain covenants within a specified period of time,
a cross-default to certain material indebtedness,
 
the bankruptcy or insolvency of
 
the Company and certain of its
subsidiaries, monetary judgment defaults of
 
a specified amount, invalidity of
 
any loan documentation, and ERISA
defaults
 
resulting
 
in
 
liability
 
of
 
a
 
material
 
amount
 
and
 
a
 
two
 
notch
 
downgrade
 
of
 
the
 
credit
 
rating
 
by
 
S&P
 
or
Moody’s in respect
 
of a Loan
 
Party which applies
 
as at June
 
18,
 
2025 or a
 
trading halt in
 
respect of such
 
Loan
Party for more
 
than
10
 
business days. In
 
the event of
 
a default by
 
the Borrowers (beyond
 
any applicable grace
or cure period, if any), the
 
Administrative Agent may and, at the direction of
 
the Lender, shall declare all amounts
owing under the
 
ABL Facility
 
immediately due
 
and payable,
 
terminate the
 
Lender’s commitment to
 
make loans
under the ABL Facility and/or
 
exercise any and all
 
remedies and other rights
 
under the ABL Facility.
 
For certain
defaults related to insolvency
 
and receivership, the commitments
 
of the Lender will
 
be automatically terminated
and all outstanding loans and other amounts will become immediately
 
due and payable.
 
A
Review Event will occur
 
under the ABL Facility
 
if any one or more
 
of the following occurs:
 
(a) a downgrade of
the credit
 
rating by
 
S&P or
 
Moody’s
 
in respect
 
of a
 
Loan Party
 
which applies
 
as at
 
the Closing
 
Date;
 
or (b)
 
a
delisting
 
of
 
any
 
listed
 
Loan
 
Party from
 
the
 
relevant
 
stock
 
exchange
 
on
 
which
 
it
 
was
 
listed
 
or a
 
trading
 
halt
 
in
respect
 
of
 
such
 
Loan
 
Party
 
for more
 
than
5
 
business
 
days.
 
Following
 
the
 
occurrence
 
of
 
a
 
Review
 
Event,
 
the
Borrowers must promptly
 
meet and consult
 
in good faith
 
with the Administrative
 
Agent and the Lender
 
to agree
on
 
a
 
strategy
 
to
 
address
 
the
 
relevant
 
Review
 
Event.
 
If,
 
at
 
the
 
end
 
of
 
a
 
period
 
of
10
 
business
 
days
 
after
 
the
occurrence of the Review Event, the Lender is not satisfied with the result of their discussion or meeting with the
Borrowers or do
 
not wish to
 
continue to provide
 
their commitments,
 
the Lender
 
may declare all
 
amounts owing
under the ABL Facility to be prepaid within another
20
 
business days.
On
 
June
 
30,
 
2025,
 
S&P
 
downgraded
 
the
 
Company’s
 
credit
 
rating
 
from
 
‘B-‘
 
to
 
‘CCC+’
 
and,
 
on
 
July
 
7,
 
2025,
Moody’s downgraded the Company’s credit
 
rating from ‘Caa1’
 
to ‘Caa2’, both
 
of which resulted
 
in a Review
 
Event
under the ABL
 
Facility.
 
On July
 
9, 2025, the
 
Company successfully
 
negotiated with
 
the Lender,
 
who confirmed
no changes to the terms or the availability of the ABL Facility,
 
thereby, concluding
 
each of the Review Events. A
potential further downgrade to the Company’s
 
credit rating by S&P or Moody’s
 
may result in an Event of Default
under the ABL Facility,
 
unless the Event of Default is cured or a waiver is obtained
 
.
To
 
establish
 
the
 
ABL
 
Facility,
 
the
 
Company
 
incurred
 
debt
 
issuance
 
costs
 
of
 
$
7.1
 
million.
 
The
 
Company
 
has
elected under its accounting policy to present debt issuance costs incurred before the debt liability is recognized
(e.g. before the debt proceeds are received)
 
as an asset which will be
 
amortized ratably over the term of
 
the ABL
Facility. The costs will not be subsequently reclassified as a direct deduction of the liability. The carrying value of
debt issuance
 
costs,
 
recorded
 
as “Other
 
non-current
 
assets”
 
in the
 
Condensed
 
Consolidated
 
Balance
 
Sheets
was $
6.9
 
million as of June 30, 2025.
Predecessor ABL Facility
On June
 
18, 2025,
 
the ABL
 
Facility amended
 
and restated
 
the predecessor
 
ABL Facility,
 
which resulted
 
in the
extinguishment
 
of
 
the
 
predecessor
 
ABL
 
Facility.
 
As
 
a
 
result
 
of
 
the
 
early
 
termination
 
of
 
the
 
predecessor
 
ABL
Facility,
 
the
 
Company
 
recorded
 
a
 
loss
 
on
 
debt
 
extinguishment
 
of
 
$
1.1
 
million
 
in
 
its
 
unaudited
 
Condensed
Consolidated Statement of
 
Operations and Comprehensive
 
Income for each of
 
the three and six
 
months ended
June 30, 2025.
Loan – Curragh Housing Transaction
On
 
May
 
16,
 
2024,
 
the
 
Company
 
completed
 
an
 
agreement
 
for
 
accommodation
 
services
 
and
 
the
 
sale
 
and
leaseback
 
of
 
housing
 
and
 
accommodation
 
assets
 
with
 
a
 
regional
 
infrastructure
 
and
 
accommodation
 
service
provider, or collectively, the Curragh
 
Housing Transaction. Refer
 
to Note
 
10. “Other
 
Financial Liabilities”
 
for further
information.
In connection with the Curragh Housing Transaction, the
 
Company borrowed $
26.9
 
million (A$
40.4
 
million) from
the same
 
regional
 
infrastructure
 
and accommodation
 
service provider.
 
This amount
 
was recorded
 
as “Interest
Bearing Liabilities” in the unaudited Condensed Consolidated Balance Sheets. The amount borrowed is payable
in equal monthly
 
installments over
 
a period of
ten years
, with an
 
effective interest
 
rate of
14.14
%. The Curragh
Housing Transaction loan is not subject
 
to any financial covenants.
As of June 30, 2025, the carrying value of the loan, net of issuance costs
 
of $
1.1
 
million, was $
24.0
 
million, $
1.5
million of which is classified as a current liability.