v3.26.1
Interest Bearing Liabilities
 3 Months Ended
Mar. 31, 2026
Interest Bearing Liabilities [Abstract]  
Interest Bearing Liabilities
10.
Interest Bearing Liabilities
The following is a summary of interest-bearing liabilities
as at March 31, 2026:
(in US$ thousands)
March 31, 2026
December 31, 2025
Weighted Average
Interest Rate at
March 31, 2026
Final
Maturity
9.250
% Senior Secured Notes
$
400,000
$
400,000
9.99
%
(2)
2029
ABL Facility
278,295
272,115
9
.00%
2030
Loan - Curragh Housing Transaction
24,860
24,748
14.14
%
(2)
2034
Debt issuance costs
(1)
(9,684)
(10,203)
Total
interest bearing liabilities
693,471
686,660
Less: current portion
(1,764)
(1,671)
Non-current interest-bearing liabilities
$
691,707
$
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
March
31,
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, 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,
or
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, dated as of
June 18, 2025,
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 March 31, 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
$
8.7
million and $
9.2
million
at March 31, 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 Corporation 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
March 31,
2026, the
aggregate principal amount
outstanding of
the ABL
Facility was $
278.3
million (A$
406.6
million), including
$
13.3
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 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.
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 11.
“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
March
31,
2026
and
March
31,
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
12. “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 $
23.8
million as of March 31, 2026,
$
1.8
million of which is classified as a current liability.