This new financing will create interest savings of about 1.5% per annum (p.a.) from the initial 8.25% p.a. to around 6.7% p.a., says Geo Energy.
The new term loan facility is 60 months from Sept 29. Besides the US$200 million which will be used for refinancing the existing loan; around US$55 million will be used for operational and capital expenditure for the accelerated expansion of its TRA coal mine.
The aim of Geo Energy is to boost the production capacity of the TRA coal mine up to 25 million tons per annum over the next couple of years after the completion of MBJ’s integrated infrastructure targeted by June 2026.
Finally, about US$20 million will be used for the group’s proposed strategic acquisition of the established shipping companies that specialised in logistics transportation of commodities.
See also: Keppel REIT obtains three loan facilities totalling A$440 mil
Shares in Geo Energy closed 1.5 cents higher or 3.261% up at 47.5 cents on Sept 29.
