Alpha Natural granted court OK of $692 million financing package

By Caroline Salls

Pittsburgh, Sept. 24 – Alpha Natural Resources, Inc. received final court approval of an 18-month debtor-in-possession financing package totaling up to $692 million, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The financing was arranged by Citigroup and led by a group of the company’s first-lien and second-lien lenders. Citibank, NA is the administrative agent.

The facility includes a $300 million term loan and a $100 million bonding facility, which can be increased with lender consent. In addition, the facility includes, with further court approval, revolving credit loans in an amount to be agreed, as well as an up to $192 million facility for letters of credit.

Interest will be either Libor plus 900 basis points with a 1% Libor floor or adjusted Base rate plus 800 bps.

Alpha Natural said the DIP financing package gives it significant operational flexibility to successfully reorganize. Accordingly, the company said it enters this process with the necessary liquidity to support its ongoing operations, which will continue to generate additional cash.

Alpha Natural Resources is a Bristol, Va., coal miner that filed bankruptcy on Aug. 3 in the U.S. Bankruptcy Court for the Eastern District of Virginia. The Chapter 11 case number is 15-33896.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.