$41.5 Million Senior Secured Financing Of Mining Royalties
Airlie Group (“Airlie”) is a global, multi-strategy investment manager that manages a diverse portfolio of credit strategies and control equity investments on behalf of its pooled investment vehicles.
Airlie’s portfolio company, Eastern Montana Minerals (“EMM”), was seeking long-term financing to monetize its royalty cash flow stream. In addition to its predictable royalties, EMM’s credit strengths include coal reserves, mineral rights, additional reserve collateral provided by the parent company and strong historical financial performance. The mining royalties represent EMM’s primary source of cash flow, which is generated through third-party mining and transportation of coal on and around the company’s properties.
G2 Capital Advisors was awarded the mandate to facilitate a structured credit financing for EMM and develop a strategy to identify the right partner. Due to G2’s relationships among potential lenders and investors, the transaction generated significant interest from a diverse mix of structured credit institutions, private equity groups and family office investors.
“Mining royalties as the basis for a structured credit are certainly not a common approach,” said Jeffrey Unger, CEO of G2 Capital Advisors. “We are pleased with the outcome of this complex transaction and are confident all parties have achieved a truly productive solution.”
The transaction was successfully executed in 2014 through a $41.5 million senior secured structured term facility syndicated and led by Deutsche Bank.