v3.25.4
Interest Bearing Liabilities
 12 Months Ended
Dec. 31, 2025
Interest Bearing Liabilities [Abstract]  
Interest Bearing Liabilities
15. Interest Bearing Liabilities
The following is a summary of the Company's interest-bearing
liabilities at December 31, 2025 and 2024:
(US$ thousands)
December 31,
2025
December 31,
2024
Weighted Average
Interest Rate at
December 31, 2025
Final
Maturity
9.25
0% Senior Secured Notes
$
400,000
$
400,000
9.99
%
(2)
2029
ABL Facility
272,115
—
9
.00%
2030
Loan - Curragh Housing Transaction
24,748
24,472
14.14
%
(2)
2034
Debt issuance costs
(1)
(10,203)
(12,165)
Total
interest bearing liabilities
686,660
412,307
Less: current portion
(1,671)
(1,363)
Non-current interest-bearing liabilities
$
684,989
$
410,944
(1)
Relates to debt
issuance costs in
connection with the
2029 Notes and
Curragh Housing Transaction
(as defined below).
Deferred debt
issuance costs incurred in connection
with the establishment of the ABL
Facility have been included within
"Other non-current assets" in the
Consolidated Balance Sheets.
(2)
Represents the effective interest rate.
The effective interest rate 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 2029
As of December 31, 2025, the aggregate outstanding principal amount of the
9.250
% Senior Secured Notes due
2029, or the Notes, 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,
or the
Indenture,
dated
as of
October
2, 2024,
among
Coronado Finance Pty
Ltd, as issuer
(the Issuer),
Coronado Global
Resources Inc., as
guarantor, the subsidiaries
of
Coronado
Global
Resources
Inc.
named
therein
as
additional
guarantors,
and
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.
The Notes are guaranteed on a
senior secured basis by the Company and certain of
the Company’s subsidiaries
that are
a guarantor
or a
borrower under
the Company’s
ABL Facility
(as defined
above) or
certain other
debt
and secured
by (i) a
first-priority
lien on
substantially all
of the
assets of
the Issuer
and each
guarantor
(other
than
certain
assets,
including,
but
not
limited
to
cash,
deposit
accounts,
securities
accounts,
commodities
accounts, accounts receivable and other rights to payment,
inventory, intercompany
loans and advances, or the
ABL Collateral,
and (ii) a
second-priority
lien on
the ABL
Collateral, which
is junior
to a
first-priority lien
for the
benefit of Stanwell under the ABL Facility,
subject to certain exceptions and permitted liens.
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 December 31, 2025, the
Company was in compliance with
all applicable covenants under the
2029 Notes
Indenture.
The
carrying
value
of
debt
issuance
costs,
recorded
as
a
direct
deduction
from
the
face
amount
of
the
2029
Notes, were $
9.2
million and $
11.1
million as at December 31, 2025 and December 31, 2024,
respectively.
Asset Based Revolving Credit Facility
On
November
27,
2025,
or
the
Amendment
Date,
the
Company,
Coronado
Finance
Pty
Ltd,
an
Australian
proprietary company and
a wholly owned
subsidiary of the
Company,
Coronado Curragh Pty
Ltd, an Australian
proprietary company and wholly owned subsidiary of the Company (together with Coronado Finance Pty
Ltd, the
Borrowers), and the other guarantors party thereto, collectively with the Company, the Guarantors,
and, together
with the Company and the Borrowers, the Obligors,
entered into the ABL Facility for an initial aggregate principal
amount
of
$
265.0
million
(A$
406.6
million)
with
Global
Loan
Agency
Services
Australia
Pty
Ltd,
as
the
Administrative
Agent,
Global
Loan
Agency
Services
Australia
Nominees
Pty
Ltd,
as
Collateral
Agent,
and
Stanwell Corporation
Limited,
as Lender.
The ABL
Facility replaced
the Company’s
predecessor credit
facility,
dated May 8,
2023 (as
amended and
restated from
time to
time) with
Highland Park
XII Pte.
Ltd, an
affiliate of
Oaktree Capital Management
L.P.,
as lender,
which the Company
fully repaid in
accordance with its
terms and
terminated in connection with entry into the ABL Facility.
The ABL Facility is
a revolving credit facility
that matures in
five years
. Availability under the
ABL Facility is limited
to an eligible
borrowing base,
determined by
applying customary
advance rates
to eligible accounts
receivable
and inventory.
Borrowings under
the ABL Facility
bear interest
at a rate
of
9
% per annum,
which may increase
to
12
% per annum depending on the level of the
Borrowing Base Ratio.
As of
December
31, 2025,
the aggregate
principal
amount outstanding
of the
ABL Facility
was
$
272.1
million
(A$
406.6
million), including $
7.1
million of foreign currency loss on translation
to U.S. dollars being the functional
currency of Coronado Finance Pty Ltd.
Amounts outstanding under the ABL Facility
are secured by (i) a first-priority lien
in the ABL Collateral, and (ii) a
second-priority lien on substantially all of the Company’s assets
and the assets of the guarantors, other than the
ABL Collateral.
The
ABL
Facility
contains
customary
representations
and
warranties
and
affirmative
and
negative
covenants
including, among others, a quarterly Borrowing
Base Ratio test and, from December 31,
2027, the maintenance
of a gearing ratio and interest coverage ratio.
The
ABL Facility
provides
for customary
events
of
default
that
may
trigger
certain
repayment
obligations
and
review events. A review event will
occur under the ABL Facility if
the Borrowing Base Ratio is below
the specified
minimum threshold of
80
%. 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
determine
whether
the
Borrowing
Base
Ratio on
the
next testing
date
will
be
above
the
specified
minimum
threshold.
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 its discussions
with
the
Borrowers,
the
Lender
may
require
the
Borrowers
to
repay
outstanding
borrowings
in
an
aggregate
amount sufficient to restore the Borrowing Base Ratio
to the specified minimum threshold.
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.
In connection with the entry into the ABL Facility, the Company also entered into amendments to its existing
coal
supply agreements with Stanwell. Refer to Note 14. “Contract
Obligations”
for further information.
To
establish
the
ABL
Facility,
the
Company
incurred
debt
issuance
costs
of
$
1.0
million.
The
deferred
debt
issuance costs were recognized as an asset which is amortized
ratably over the term of the ABL Facility.
The carrying value of
debt issuance costs,
recorded as “Other
non-current assets” in
the Consolidated Balance
Sheets, was $
1.0
million as of December 31, 2025.
Loss on debt extinguishment in relation to predecessor
credit facilities
The predecessor credit facilities
were extinguished on June
18, 2025, and November
27, 2025, and as a
result,
outstanding
deferred
debt
issuance
costs
of
$
7.0
million
and
$
12.3
million
of
make-whole
premium
were
recognized
as
a
loss
on
debt
extinguishment
in
the
Company’s
Consolidated
Statement
of
Operations
and
Comprehensive Income for the year ended December
31, 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
16 “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
Consolidated
Balance
Sheets.
The
amount
borrowed
is
payable
in
equal
monthly
installments
over
a
period
of
ten years
from
commencement,
with
an
effective
interest
rate
of
14.14
%.
The
Curragh Housing Transaction loan is not
subject to any financial covenants.
The carrying value of the loan, net of issuance costs of $
1.0
million, was $
23.7
million as of December 31, 2025,
$
1.7
million of which is classified as a current liability.