BHP's 80% BMC stake is held in the company Dampier Coal and Stanmore is buying all the shares in Dampier Coal.

Stanmore has executed the five-year debt facility through its wholly owned subsidiary Stanmore SMC Holdings Pty Ltd with financiers advised or managed by Värde Partners, Canyon Capital Advisors, Farallon Capital Asia and other credit funds.

The debt facility is guaranteed by and secured against Stanmore SMC Holdings' assets.

Subject to Dampier Coal obtaining any necessary financial assistance approvals, the debt facilit will also become guaranteed by and secured against all of Dampier Coal's assets, including its interest in BMC.

The facility, which has a fixed cash interest rate of 11.5% per annum paid in arrears, is non-recourse to Stanmore.