The S&P/ASX 300 Index (ASX: XKO) is up 0.7% today, with plenty of help from this rocketing ASX 300 stock.
The fast-rising company in question is Coronado Global Resources Inc (ASX: CRN).
Shares in the Aussie coal miner closed yesterday trading for 10.5 cents. In late morning trade, shares are swapping hands for 15.0 cents apiece, up a blistering 42.9%.
That will come as welcome news to longer-term shareholders who've watched the Coronado share price plunging ever lower since September 2023.
Here's what's stoking investor interest in the ASX 300 stock today.
ASX 300 stock surges on $150 million finance deal
Coronado Global Resources has been struggling over the past 18 months amid slumping coal prices, rising operating costs, and more unpredictable demand.
Speaking at the company's AGM today, chairman Gerry Spindler said, "Like many peers, we've experienced unrelenting pressure on working capital and have had to make tough but necessary decisions to preserve the core value of our business."
But the company's liquidity woes look to have taken a sharp turn to the better with a $150 million refinancing commitment.
This morning, the ASX 300 stock announced that it had entered into a binding commitment letter to refinance its existing asset-based lending (ABL) facility with Oaktree Capital Management.
Coronado said that the three-year ABL facility will be secured against certain receivables and inventory assets, with the ASX coal miner drawing an initial $75 million at financial close.
According to the release, the remaining $75 million is available to be drawn down in minimum $25 million increments for a further 12 months.
The ASX 300 stock said this will provide an immediate liquidity solution as well as offering further funding flexibility for future working capital increases.
What did management say?
Commenting on the $150 million refinancing agreement that's boosting the ASX 300 stock today, Coronado chief financial officer Barrie Van der Merwe said, "Entering into this transaction with Oaktree is an important first step in our strategy to stabilise and strengthen our financial position."
Van der Merwe added:
It reflects a clear confidence from a credible lender in the underlying value of our asset base and business fundamentals.
This facility gives us the flexibility we need to provide an upfront cash injection and fund future working capital needs, while we continue executing on our broader liquidity plan. Importantly, the way the covenant thresholds are designed, provides us with flexibility to navigate the challenging current commodity price environment.
With today's big intraday gains factored in, shares in the ASX 300 coal stock remain down 88% since this time last year.
