Bulletin: Coronado's Recapitalization Reduces Near-Term Liquidity Risk

MELBOURNE (S&P Global Ratings) May 14, 2021--S&P Global Ratings today said that Coronado Global Resources Inc.'s (B-/Negative/--) recapitalization has modestly improved the group's cash position and helped alleviate near-term liquidity risks. The company raised US$350 million via 10.75% coupon senior secured notes, US$100 million through an asset-based loan facility, and approximately US$100 million in equity capital. These funding sources helped repay US$324 million (as of March 31, 2021) drawn down from its US$525 million senior secured syndicated facilities, thereby relieving covenant pressures. However, we expect the company to consume much of the newly available liquidity over the next 12 to 18 months, given our forecast of continued negative free cash flow (see "Coronado Global Resources Downgraded To 'B-' On Covenant

...May 13, 2021 MELBOURNE (S&P Global Ratings) May 14, 2021--S&P Global Ratings today said that Coronado Global Resources Inc.'s (B-/Negative/--) recapitalization has modestly improved the group's cash position and helped alleviate near-term liquidity risks. The company raised US$350 million via 10.75% coupon senior secured notes, US$100 million through an asset-based loan facility, and approximately US$100 million in equity capital. These funding sources helped repay US$324 million (as of March 31, 2021) drawn down from its US$525 million senior secured syndicated facilities, thereby relieving covenant pressures. However, we expect the company to consume much of the newly available liquidity over the next 12 to 18 months, given our forecast of continued negative free cash flow (see "Coronado Global Resources Downgraded To 'B-' On Covenant Pressure And Tightening Liquidity; Outlook Negative," published March 30, 2021, on RatingsDirect). In our opinion, Australia's near-term coal prices are...

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