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Street Talk is shaking up the way we deliver our daily newsletter in 2024.

After taking on your feedback, we’ve returned to nightly dispatches. Expect your newsletter in your inbox each evening at 9.30.

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Sarah Thompson, Kanika Sood and Emma Rapaport
Street Talk editors

Here’s tomorrow’s news, today:

Whitehaven’s debt stack for BHP coal mines pulls a crowd

Who’s who of private debt has shown up for Whitehaven Coal‘s debt capital markets trip to bankroll its $6.2 billion acquisition of BHP’s Daunia and Blackwater coal mines in Queensland.

Street Talk understands Whitehaven received commitments from private credit giants Ares Management and Canyon Partners as well as hedge fund Farallon Capital Management for the $US900 million credit facility.

Farallon, in particular, knows Whitehaven well. It was there when Nathan Tinkler’s Aston Resources bought Maules Creek coal mine in 2009 for $450 million. It was also on the scene when Aston listed and later merged with Whitehaven. And it’s there now as Whitehaven works to digest its biggest M&A bet – only this time the firm is a lender, having offloaded most of its Whitehaven shares in late 2019.

Raymond Zage, who spearheaded the investment for Farallon and left to start his own firm while continuing in an advisory role, has remained on Whitehaven’s board as a non-executive director.

Sources said Whitehaven would pay about 600bps margin to borrow $US900 million ($1.3 billion) across a five-year facility, which is better than its initial ask, on both the pricing and the deal size. Back in November, when the talks began, Whitehaven was said to be seeking $US500 million to $US600 million at the 650bps mark.

Ares, Canyon, Farallon and other lenders would replace Whitehaven’s advisers, Jefferies and Bank of America, which wrote a $US900 million bridge loan to help Whitehaven stand up its $6.2 billion winning bid in the MacCap-run auction.

The debt slice’s size, pricing and investor turnout should also give hope to suitors eyeing other coal assets in the M&A pipeline, given it proves the availability of financing for coal where traditional banks are largely shut for business.

• Private equity-owned I-MED has Morgan Stanley on hand for a $4 billion sale.
• London-listed Vodafone Group may be ready to hang up on TPG Telecom.
• Tel Aviv-listed fashion and lifestyle retailer Fox Group is circling Australian Nike franchisee Retail Prodigy Group.
• Zenith has called in Azure Capital to run a strategic review of its lithium business.

• BlackRock has snapped up Global Infrastructure Partners for $US12.5 billion in a major push into alternatives, theFinancial Times reports.
• PAI Partners is in the early stages of exploring options for its ice cream joint venture with Nestle SA, Bloombergreports.
• EQT and KKR are among the private equity firms interested in acquiring $US5 billion software business Broadcom, Bloombergreports.

Vodafone is trading at its lowest levels in 28 years, amid concerns about a €36.2 billion ($59 billion) net debt load and anaemic financials.

Click here for the latest equity market wrap.