CG Commercial Finance mines £77m financing deal

CG Commercial Finance (CGCF) has provided some $77m of financing for one of the largest privately held coal mining operations in the US.

The funding, totalling $77,162,139, will be used for new and used above and below ground mining equipment and vehicles. The leases are structured as GAAP operating leases to preserve the client’s liquidity and to manage certain financial ratios to stay within its lender’s covenants.

CGCF said the client had chosen the company for its “ability to meet their aggressive funding timelines and to secure their required borrowing capacity during a very challenging environment for lending within the domestic coal industry”.

CGCF funded both highly specialized and used equipment, and provided residual investments in the equipment that allowed for GAAP operating lease treatment.

Additionally, CGCF provided end of lease purchase financing for existing leases on the client’s books, paying off and aggregating many disparate lease providers. This enabled the client to have a single point of contact and one set of master documentation for all of their lease schedules.

The client’s chief financial officer stated in his letter to CGCF post funding: “CGCF’s leasing solutions have enabled our Company to successfully implement a very significant capital program over that period that has resulted in substantial production improvements.”