The placement of long-term senior unsecured notes was oversubscribed, allowing Centennial to increase it by $US55 million to $US205 million.
Proceeds would be used to repay and restructure existing bank debt, as well as align debt maturities with Centennial’s long-term domestic contract position.
“This is a good outcome for Centennial, providing greater financial flexibility and a long term debt maturity profile, confirming that we have the financial resources in place to proceed with our Anvil Hill mine, which will be a world class open cut mine,” Centennial managing director Bob Cameron said.
Anvil Hill will produce 10.5 million tonnes per annum of thermal coal by 2008.
The mine will supply 30Mt of coal to Macquarie Generation over 12 years, with the remainder flagged for export to capitalise on lucrative export prices.