- TerraCom (TER) has reported a further contribution to reduce its debt for the Euroclear bond facility
- The company paid an extra US$20.8 million (A$28.3 million) to bondholders in interest, fees and principle in February, reducing the principle owing amount to US$102 million (A$138.7 million)
- With a prepayment of US$60 million (A$81.6 million) expected in April, along with planned monthly repayment amounts, the Euroclear Bond is expected to be fully repaid by the end of June
- The company said the debt may be repaid sooner than expected if the thermal coal pricing remains at current prices
- Shares closed 10.53 per cent higher today at 42 cents each
TerraCom (TER) has reported a further contribution to reduce its debt for the Euroclear bond facility.
The company paid an extra US$20.8 million(A$28.3 million) to bondholders in interest, fees and principle in February.
This has reduced the principle owing amount on the Euroclear Bond to US$102 million (A$138.7 million).
With a prepayment of US$60 million (A$81.6 million) expected in April, along with planned monthly repayment amounts, the Euroclear Bond is expected to be fully repaid by the end of June.
Executive Chairman Craig Ransley said the debt may be repaid sooner.
“The company is pleased with the continued payment of funds to reduce the
Euroclear Bond,” he said.
“The company is still forecast to repay US$15 million (A$20.4 million) per month from cash generated from the company’s Blair Athol operations and if thermal coal pricing remains at current levels, payments will be increased, and the debt will be fully repaid faster than forecast.
This will also allow the Board to accelerate its plan to return dividends to shareholders.”
The company also advised it will continue to report on debt reductions each month but will only provide updates on its coal sales and EBITDA every quarter.
Shares closed 10.53 per cent higher today at 42 cents each.