BofA, Jefferies bankroll Whitehaven’s winning bid for BHP coal
Wall Street banks Jefferies and Bank of America are understood to be the lenders behind Whitehaven Coal’s winning $US3.2 billion bid for BHP’s Queensland coal mines, Blackwater and Daunia.
BHP has sold two of its Queensland mines, Daunia and Blackwater, but is keeping its most valuable coking coal mines. AFR
It is understood the two banks put up the money for Whitehaven’s $US900 million ($1.4 billion) bridge debt facility, which is expected to be replaced with longer-term debt funding eventually. Nevertheless, it should get the two banks close to Whitehaven Coal for its future investment banking needs.
The winning bid, revealed by Street Talk on Wednesday morning, saw Whitehaven defeat rival bidders BUMA and Stanmore Resources in the auction’s final leg. Sell-side adviser Macquarie Capital fielded bids from several other parties including Peabody Energy, Yancoal Australia and Coronado Global Resources early in the auction.
The mines’ minority owner, Mitsubishi, was advised by Rothschild & Co. The suitors had lobbed bids for individual mines and both together.
Whitehaven, which faced an opposition campaign from its shareholder Bell Rock Capital on its bid, is not raising equity to finance the acquisition. Instead, it is funding the purchase via the debt facility, available cash and cashflows from its bulked-up business over the 2025, 2026 and 2027 financial years.
Its official status is “preferred bidder” and the deal is expected to be completed by June 30.
It told investors it is considering options to sell down a slice of the mines to global steel producers. Street Talk has previously reported that bidders in the auction tried to woo steelmakers JFE and Nippon Steel, and trading houses Marubeni and Sojitz.
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