SLM advises QCoal on successful refinancing proposal for Bounty Mining Limited (ASX: B2Y)

SLM Corporate is pleased to advise that it has acted as corporate adviser to QCoal Group in relation to a $90 million refinancing proposal for ASX-listed coal miner Bounty Mining Limited (ASX: B2Y).

Bounty was the subject of an existing recapitalisation proposal (involving a convertible note) from its existing debt financier and major shareholder, Amaroo Blackdown, which was to be voted on by Bounty shareholders at a General Meeting.  SLM assisted QCoal in submitting several alternate, superior refinancing proposals to Bounty (which were rejected by the Company’s board) and in engaging with and lobbying Bounty’s shareholders to seek their support in voting down the Amaroo proposal.

Bounty shareholders overwhelmingly voted against the Amaroo proposal at the General Meeting, prompting Bounty’s Board to enter into negotiations and finalise a funding agreement with QCoal instead.  Binding facility agreements were prepared and finalised within a tight timeframe, in order to alleviate Bounty’s financial pressures and to meet immediate funding needs.

QCoal’s $90 million funding package, comprising a senior-secured multi-tranche cash finance and guarantee facility, delivers greater funding at a cheaper cash cost to Bounty compared with the Amaroo proposal, and avoids any dilution of Bounty’s shareholders.  As part of the agreement, QCoal has the right to nominate and appoint up to 49% of Bounty board members.  In addition, Bounty will enter into a new 5-year coal offtake agreement with QCoal.

SLM worked closely with Arnold Bloch Leibler who acted as legal advisers to QCoal in relation to the matter.

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