Whitehaven Coal, an Australian conglomerate, has reached out to Washington H Soul Pattinson, an ASX-listed company, for debt assistance in its $US4.1 billion ($6.4 billion) acquisition of BHP’s Blackwater and Daunia coal mines in Queensland. This move comes after Whitehaven secured a $US900 million bridge loan from Bank of America and Jefferies for its initial bid. Soul Patts, known for its previous involvement in debt financing for Stanmore Resources’ acquisition of BHP Mitsui Coal, is expected to be one of the lenders in the deal.
While Soul Patts’ interest in coal-related ventures is not surprising, it is worth noting that another company within its portfolio, New Hope, was initially considered a potential bidder for the Blackwater and Daunia operations. However, New Hope refrained from submitting a bid, and now Soul Patts is stepping in as a lender instead.
Soul Patts has significant exposure to New Hope, along with other investments in companies such as Brickworks, TPG Telecom, Aeris Resources, Apex Healthcare, and fund managers Pengana Capital and Milton Corporation. The company has been actively involved in credit deals, with over $650 million invested in its “structured yield” portfolio as of June 30, encompassing corporate loans, bonds, and structured investments. It is expected that Whitehaven’s debt assistance will fall under this portfolio if the deal is finalized.
Whitehaven’s winning bid for BHP’s coal mines has generally received positive feedback, despite continued opposition from UK hedge fund Bell Rock Capital. The acquisition marks a significant move for Whitehaven in expanding its presence in the coal industry.
FAQ
1. What is the value of Whitehaven Coal’s acquisition of BHP’s coal mines?
Whitehaven Coal’s acquisition of BHP’s Blackwater and Daunia coal mines in Queensland is valued at $US4.1 billion ($6.4 billion).
2. Who is providing debt assistance to Whitehaven Coal?
Washington H Soul Pattinson, an ASX-listed conglomerate, is in talks to join Whitehaven Coal’s debt stack for the acquisition.
3. Which companies are included in Soul Patts’ portfolio?
Soul Patts’ portfolio includes investments in companies such as Brickworks, TPG Telecom, Aeris Resources, Apex Healthcare, and fund managers Pengana Capital and Milton Corporation.
4. What is Soul Patts’ involvement in credit deals?
Soul Patts has been actively involved in credit deals and had over $650 million invested in its “structured yield” portfolio as of June 30, encompassing corporate loans, bonds, and structured investments.