Golden Energy and Resources secures A$150m loan facilities for Stanmore Coal bid

SINGAPORE - Indonesian coal producer Golden Energy and Resources (Gear) has secured term loan facilities of up to A$150 million (S$145.15 million) from lender Credit Suisse, mainly to finance its acquisition of shares in Stanmore Coal, said the firm late on Monday (Dec 24).

The term loan facilities are secured by a share pledge in favour of PT Bank CIMB Niaga Tbk over certain shares Gear owns in PT Golden Energy Mines Tbk (GEMS), and a guarantee and indemnity agreement granted by PT Hutan Rindang Banua in favour of Credit Suisse.

The pledged GEMS shares are also being used to secure Gear's US$150 million senior secured notes due 2023 at a coupon of 9 per cent per annum, which were issued in February.

In November, Gear had announced its bid for a 19.9 per cent stake in coking coal-focused Stanmore for A$47.6 million in cash, with plans to eventually transfer that interest to a 51 per cent joint venture that is offering up to A$201.13 million for all the remaining shares of Stanmore.