Yancoal secures debt facility

Yanzhou to provide $US300m facility, to be used to fund working capital.

Yancoal (YAL) has struck a deal with major shareholder Yanzhou Coal Mining Company Limited for a $US300 million ($A329.49m) long-term debt facility to fund working capital and capital expenditure.

Yancoal said the first tranche of $US100m has a term of six years and is provided on an unsecured basis with no covenants.

The interest and repayment timing for the next tranches, constituting $US200 million in aggregate, will be agreed at a future time prior to those tranches being advanced.

Yesterday, Yanzhou announced it will not pursue a planned buyout of minority shareholders in Yancoal Australia.

The Yancoal buyout was dependent on successful talks between Yanzhou, which has a 78% stake in Yancoal, and Noble Group, Asia’s largest commodity trader by sales, which has a 13% Yancoal shareholding.

“Yanzhou no longer wishes to pursue its indicative non binding proposal regarding the possible privatisation of Yancoal,” an ASX statement said.