Tinkler's backers take $50m hit
A detailed statement lodged with the ASX on Thursday indicates the total size of the Tinkler loan raised against his holding in Whitehaven, a coalminer, was $US634 million ($690 million).
Mr Tinkler's block of about 200 million Whitehaven shares was taken off him at $2.96 a share, with the prospect of a further top-up payment being made if the shares trade at above this price for a sustained period between February and March next year.
Wednesday's move by Mr Tinkler's financial backers was worth an estimated $600 million, leaving them short by more $US34 million, with the recent slide in the Australian dollar adding to their losses.
On Thursday, US investor Burlingham International and some associates said they had bought a tranche of the Tinkler debt in April last year from Credit Suisse Singapore, picking up $US12.54million of the $US634 million loan at face value. This investor has been acquiring Whitehaven shares in recent months as they fell closer to $2, picking up about 46.4 million shares which, with the portion of the Tinkler holding acquired Wednesday, gives it a total holding of 59.7 million shares in the company, equal to 5.8 per cent of the capital.
The Tinkler loan was secured against his Whitehaven holding. The price he lost control of his Whitehaven holding at was well below the $5.20 "indicative" offer Mr Tinkler said he would make for Whitehaven last year, just months after the $US634 million financing appears to have been put in place.
That announcement helped to propel Whitehaven's share price above $4 for a time, but the gains were not sustained.
Frequently Asked Questions about this Article…
Financiers seized control of Mr Tinkler’s roughly 20% block of Whitehaven shares — about 200 million shares — after the loan secured against that holding. The shares were taken at $2.96 a share, with a possible top‑up payment if the shares trade above that level for a sustained period between February and March next year.
The detailed ASX statement in the article says the total size of the loan raised against Mr Tinkler’s Whitehaven holding was about US$634 million (reported as roughly $690 million in Australian dollars).
Yes — the article says financiers appear to have taken a haircut of about $50 million on their identifiable exposure. The Wednesday move to seize the shares was estimated at about $600 million in value, leaving them around US$34 million short, with a fall in the Australian dollar adding to those losses.
US investor Burlingham International and some associates bought a tranche of the Tinkler debt in April last year from Credit Suisse Singapore, picking up US$12.54 million of the US$634 million loan at face value. They have been acquiring Whitehaven shares as prices fell and, after the most recent acquisition, hold about 59.7 million shares in total — equal to roughly 5.8% of the company’s capital.
The financiers took control of the shares at $2.96 a share. The arrangement includes the prospect of a further top‑up payment if the shares trade above $2.96 for a sustained period between February and March next year.
No — the $2.96 price at which control was lost was well below the $5.20 'indicative' offer Mr Tinkler had said he would make for Whitehaven last year. That earlier announcement briefly helped push Whitehaven’s share price above $4, but those gains were not sustained.
The article notes that the recent slide in the Australian dollar added to financiers’ losses, contributing to them being about US$34 million short even after the estimated $600 million value of Wednesday’s move.
The article illustrates how large secured loans and creditor actions can lead to sudden ownership changes and share‑price volatility. For everyday investors, it’s a reminder to watch company ownership structures, secured lending against large shareholdings, and how market moves (including currency swings) can affect both lenders and equity holders.
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