Coal of Africa completes working capital from Investec

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Coal of Africa Limited has finalised an 18 month working capital facility of R210 million from Investec Bank Limited.

The working capital facility will be put toward general operating expenditure and allow the company to continue making progress in its turnaround strategy.

The facility will also be used to fund on-going operating costs while the company waits for the proceeds from the Woestalleen, Mooiplaats, Opgoedenhoop and Holfontein sales.

The principal terms of the loan include a margin of 500 basis points, pledge and cession of the shares and loan accounts of the company’s major operating subsidiaries.

About 20 million options will be issued to Investec which are exercisable at R1.32 before October 2018.

The loan will be made available in two equal parts with the first tranche of R105 million being made available immediately and the second will be issued in line with the progress of the Woestalleen and Mooiplaats colliery disposals. It is expected that the proceeds from the disposals will be enough to settle the facility.

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