v3.26.1
Interest Bearing Liabilities
 6 Months Ended
Jun. 30, 2026
Interest Bearing Liabilities [Abstract]  
Interest Bearing Liabilities
11.
Interest
Bearing Liabilities
The following
is a summary
of
interest-bearing
liabilities
as at June
30, 2026:
(in US$ thousands)
June 30, 2026
December 31, 2025
Weighted Average
Interest Rate at
June 30, 2026
Final
Maturity
9.250
%
Senior Secured
Notes
$
400,000
$
400,000
9.99
%
(2)
2029
ABL Facility
279,270
272,115
9
.00%
2030
Loan -
Curragh Housing
Transaction
24,489
24,748
14.14
%
(2)
2034
Debt
issuance costs
(1)
(9,133)
(10,203)
Total
interest
bearing liabilities
694,626
686,660
Less: current
portion
(1,829)
(1,671)
Non-current
interest-bearing
liabilities
$
692,797
$
684,989
(1)
Relates to 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 (as defined
below) 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,
2026, 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.
The Notes
mature on
October
1, 2029
and
are
senior secured
obligations
of
Coronado
Finance Pty
Ltd,
as issuer,
or the Issuer.
The terms
of
the Notes are governed
by an
indenture,
or the Indenture,
dated as
of
October 2,
2024, among
the
Issuer,
Coronado
Global
Resources
Inc.,
as
guarantor,
the
subsidiaries
of
Coronado
Global
Resources
Inc.
named therein
as additional
guarantors
(collectively
with Coronado
Global Resources
Inc., the 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 guarantee,
or
are a
borrower,
under
the Company’s
ABL
Facility 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 accounts
receivable
and
certain
other
rights
to
payment,
inventory,
certain
investment
property,
certain
general
intangibles
and
commercial
tort
claims,
deposit
accounts,
securities
accounts
and other
related
assets,
chattel
paper,
letter
of
credit
rights,
certain
insurance
proceeds,
intercompany
indebtedness
and
certain
other
assets
related
to
the
foregoing
and proceeds
and
products
of
each of
the foregoing
,
or collectively,
the ABL
Priority
Collateral)
and
(ii) a second
-priority lien
on the ABL
Priority
Collateral,
which is
junior
to a
first
-priority lien for
the benefit
of
the
lenders
and
other
creditors
under
the
Company’s
asset-based
revolving
credit
facility,
subject
to
certain
exceptions
and permitted
liens.
Upon the
occurrence
of
a “Change
of
Control
Triggering
Event”,
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, 2026, the Company
was in compliance
with all applicable
covenants
under the Indenture.
The carrying value of debt issuance costs,
recorded as a deduction of
the Notes, was $
8.1
million and $
9.2
million
at June 30,
2026 and December
31, 2025,
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
an
asset-based
lending
facility,
or
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 Corpor
ation Limited,
or Stanwell,
as Lender.
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
June 30,
2026, the aggregate
principal amount
outstanding
of
the ABL Facility
was $
279.3
million
(A$
406.6
million), including $
14.3
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
Priority
Collateral,
and (ii) a second-priority
lien on substantially all of
the Company’s assets
and the assets of
the other Guarantors,
other than
the ABL Priority
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.
As of
June 30, 2026,
the Borrowing
Base Ratio
exceeded
the specified
minimum
threshold
and
no
review event
occurred
under the
ABL Facility.
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 12.
“Stanwell Liabilities
”
for
further information.
The carrying
value of
debt issuance
costs,
recorded as
“Other
non-current
assets”
in the
Consolidated
Balance
Sheets, was
$
0.9
million and $
1.0
million, as of
June 30, 2026 and June 30,
2025, respectively,
and is amortized
ratably
over the
term of
the ABL Facility.
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 13.
“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
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 $
23.5
million
as of
June 30, 2026, $
1.8
million
of
which is classified
as a current liability.