Coal Mine Financing
Our client asked for $20 million in project financing for coal-cleaning equipment in a number of mines that were being re-opened after 20 years of non-use. In addition, a rail spur extension serving the mines needed to be much longer than originally anticipated. The bank would not consider his request without 40% cash and $1 million in compensating balances. Nor would it consider the purchased mining leases as collateral.
Please note: We respect the confidentiality of our clients’ transactions. The purpose of this example is to illustrate the unique features and benefits of our financing structures. Key details are not disclosed or may be changed to protect confidentiality.