Coal miner Whitehaven has entered into an $850 million ($US600 million) senior secured syndicated facility and received bank credit approvals for more than $200 million ($US150 million).

The financing will be used to partly repay a $US1.1 billion term loan facility connected to its acquisition of the Daunia and Blackwater mines from BMA in 2024 and will also replace a general corporate purpose revolving credit facility.

The company said the facility enhanced its liquidity position, extended its debt maturity profile, reduced its funding cost and provided additional flexibility to support operations and capital management objectives.

“With Whitehaven’s strengthened credit profile and successful integration – and initial improvements – of the Daunia and Blackwater metallurgical coal operations, we are focused on refinancing our acquisition credit facility and establishing a capital structure with more diverse, longer-tenor and lower-cost debt facilities,” Whitehaven (ASX: WHC) managing director and chief executive officer Paul Flynn said.

“The successful execution of the new senior secured syndicated facility, with a headline rate of around 6 per cent, further strengthens our funding flexibility, extends our maturity profile, materially reduces our funding cost and improves our weighted average cost of capital.

“The support from banking partners reflects confidence in Whitehaven’s financial discipline, cash flow generation and prudent approach to capital management.

“We look forward to completing the refinancing of the balance of our acquisition credit facility and delivering on our broader financing objectives including delivering value for our shareholders.”

Completion of the facility is subject to customary closing conditions.

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