#Australia #NCIG Holdings #Newcastle Coal #Newcastle #Debt Securities

Newcastle Coal Infrastructure Group Announces Cash Tender Offers

Newcastle Coal Infrastructure Group (NCIG), a wholly-owned subsidiary of NCIG Holdings Pty Ltd, has recently made an important announcement concerning cash tender offers for its outstanding debt securities. This announcement comes as part of the company’s strategic financial planning to manage its debt effectively and improve its capital structure.

On November 26, 2024, NCIG disclosed the pricing terms of its previously stated cash tender offers, aiming to purchase up to $54,894,000 in original aggregate principal amounts of its 4.400% Guaranteed Senior Secured Notes due 2027, and up to $10,000,000 in original aggregate principal amounts of the 4.700% Guaranteed Senior Secured Notes due 2031. These figures represent the company's commitment to optimizing its financial position through proactive management of its liabilities.

Details of the Offers

The tender offers are outlined in the Offer to Purchase document, dated November 12, 2024, which contains comprehensive details about the terms and conditions of the offers. Holders of the Securities are encouraged to review this document carefully before making any decisions. The offers will expire at 5:00 PM New York City time on December 11, 2024, unless extended or terminated earlier by the company.

The considerations for the cash offer are detailed in a table format within the announcement. For the 2027 Notes and the 2031 Notes, the company has set specific acceptance priority levels, reference U.S. Treasury securities, and calculated spreads to determine the total consideration. Holders who validly tender their securities by the early tender deadline of November 25, 2024, will receive a premium in addition to the total tender consideration, which reflects not only their principal amounts but also accrued interest.

For example, the total consideration for the 2027 Notes has been calculated taking into account the reference yield of 4.237% plus a fixed spread of 95 basis points, leading to a total consideration of $956.99 per original $1,000 principal amount. Additionally, an early tender premium of $50 is added for those who act quickly, further encouraging participation in the tender offer.

Conditions and Anticipated Settlement Date

While the Offers are set to expire on December 11, 2024, the company has noted that due to the aggregate principal amounts of each series of securities validly tendered exceeding the Tender Cap, it may not accept securities tendered after the early tender deadline. This highlights the demand from holders and NCIG's intent to manage its debt in a disciplined manner.

The anticipated early settlement date is scheduled for December 4, 2024, contingent upon the satisfaction of all conditions described in the Offer to Purchase. The company's obligations to accept and pay for the securities is subject to these conditions, ensuring a structured approach to financial transactions.

About Newcastle Coal Infrastructure Group

Established in 2004, Newcastle Coal Infrastructure Group operates a significant coal export terminal located at the Port of Newcastle in New South Wales. The facility plays a vital role in the Australian coal export sector, hosting extensive rail, storage, and loading infrastructures. NCIG's shareholders include major mining companies like BHP Group Limited and Yancoal Australia Limited, reflecting the strategic importance of the entity within the industry.

As NCIG continues to manage its debt and enhances its operational efficiency through these tender offers, the outlook remains focused on cultivating a robust financial foothold in the Australian market. Stakeholders will be keen to observe the outcomes of this tender as NCIG paves the way for future growth and investment opportunities.