Bowen Coking Coal (ASX:BCB) Announcement

Bowen Coking Coal Ltd (ASX:BCB) has executed a Heads of Agreement with its senior and subordinated lenders, Taurus Mining Finance Fund No. 2, L.P. (Taurus) and New Hope Corporation (New Hope) respectively, to amend their loan facilities. The agreement includes a deferral of principal loan repayments, extension of tenor, and a reduction in interest and royalty costs in exchange for an equity issuance, subject to a minimum A$25 million equity raise and no insolvency event.

Executive Commentary

Recent operational success has allowed Bowen Coking Coal to secure amended debt terms with its lenders, providing the company with debt repayment headroom while securing additional liquidity for the business during the transition to Plumtree North. The extended maturities offer flexibility as the company explores options to relieve working capital constraints and strengthen its balance sheet. The focus remains on ongoing cost reduction and performance improvement to drive further savings amidst recent coal price reductions.

Summary of Announcement

Bowen Coking Coal (ASX:BCB) has reached a Heads of Agreement with its lenders, Taurus and New Hope, to amend loan facilities, providing the company with extended maturities and reduced interest and royalty costs. The agreement is conditional on a minimum A$25 million equity raise and no insolvency event. The company's CEO, Mr Daryl Edwards, highlighted the opportunity to secure amended debt terms, emphasizing the focus on cost reduction and performance improvement. The company aims to secure additional liquidity during the transition to Plumtree North and capitalize on its positive operating performance and cost reduction initiatives. The amended terms provide flexibility and headroom for debt repayment while the company explores further options to strengthen its balance sheet and take advantage of its improved operational outlook.