Coronado Global Resources will take a steep discount to its recent trading price to get a $132m entitlement issue away, suggesting market doubts linger over the value of listed coal plays.
Coronado will tap the market for $132m at 45c a share as the coal miner looks to refinance its balance sheet as coal markets steady.
The US and Australian miner launched its 1 for 4.73 accelerated pro-rata non-renouncable entitlement issue on Tuesday, looking to raise $US100m ($132m), with Citigroup and Credit Suisse as the lead managers and underwriters.
Coronado will use the cash to pay down its syndicated debt facilities and for general purposes, with major shareholder Energy and Minerals Group – worth 55.9 per cent of the coal miner’s register – promising to take up its full entitlement and retain control of Coronado.
The issue price comes at a steeper discount than other recent resources raising in the market, suggesting the market remains dubious about listed coal plays.
Coronado’s 45c issue price is a 24.7 per cent discount to its last trading price of 59.5c.
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