Early Results of Newcastle Coal's Cash Tender Offer Revealed
Early Tender Results Unveiled by Newcastle Coal Infrastructure Group
Newcastle Coal Infrastructure Group Pty Ltd (the "Company"), a fully-owned subsidiary of NCIG Holdings Pty Ltd, has disclosed early tender results for its previously announced cash tender offers, referred to collectively as the "Offers." These results provide insight into the current status of certain outstanding debt securities.
Details of the Early Tender Deadline
As of 5:00 p.m. New York City time, the aggregate principal amount of the securities specified in the table had been tendered validly by the Early Tender Deadline. It is important to note that withdrawal rights for the securities expired at this time.
Tender Results Overview
A significant volume of offerings were tendered, showcasing interest in the securities under review. Here’s a snapshot of the two key securities involved:
- 4.400% Guaranteed Senior Secured Notes due 2027
- 4.700% Guaranteed Senior Secured Notes due 2031
Acknowledging the Aggregate Maximum Tender Amount
The total amount tendered surpassed US$45 million, which is classified as the Aggregate Maximum Tender Amount. This indicates strong participation from investors. The Offers are structured to enhance liquidity for both the Company and its stakeholders.
Implications of the Tender Offer
The Offers are set to conclude at 5:00 p.m. New York City time on a specific date, unless the Company decides to extend them. Stakeholders are encouraged to examine the Offer to Purchase in detail, as it provides comprehensive insights into the Offers’ terms.
Settlement Details and Considerations
The determination of total consideration for the securities tendered will occur at 10:00 a.m. New York City time on the next day after the Early Tender Deadline. Subsequently, the Early Settlement Date is anticipated to follow shortly after.
Proration and Purchase Dynamics
Given the overwhelming response from Holders, the Company indicates that it will use proration measures to establish how much can be accepted from each tendering Holder. For the 2027 Notes, a proration rate of 34.98% will be applied, ensuring an equitable process.
Company Responsibilities and Dealer Managers
With Citigroup Global Markets Inc. and nabSecurities, LLC acting as dealer managers, the Company remains committed to facilitating all aspects of these Offers while fulfilling its obligations under the Offer to Purchase.
About Newcastle Coal Infrastructure Group
The Company owns and operates a coal export terminal located in a key area of Australia, contributing significantly to its coal export sector. Established in 2004, the Company's operations encompass rail, coal storage, and ship loading services, and it is backed by patrons that include some of the largest mining companies globally.
Frequently Asked Questions
1. What is the purpose of the cash tender offers?
The cash tender offers aim to enhance liquidity by allowing holders of the Company's securities to sell them back to the Company before maturity.
2. How does proration work in this context?
Proration refers to the process of determining how much of each security can be purchased from holders in light of total submissions exceeding the maximum threshold.
3. When can holders expect payment for their tendered securities?
Holders can expect payment upon the Early Settlement Date, anticipated shortly after the evaluation of tenders.
4. Who are the primary companies involved in managing the Offers?
Citigroup Global Markets Inc. and nabSecurities, LLC are managing the Offers as dealer managers.
5. What facilities does the Company operate?
The Company operates a coal export terminal with facilities for rail transport, storage, and ship loading, essential for coal exports.
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