Cloud Peak Energy amends credit agreement, lowers maximum capacity

By Tali Rackner

Norfolk, Va., Sept. 12 – Cloud Peak Energy Inc. wholly owned subsidiary Cloud Peak Energy Resources LLC amended its credit agreement with agent PNC Bank, NA on Friday, according to a press release.

The amendment modified the credit agreement dated Feb. 21, 2014 to

• Reduce the maximum borrowing capacity to $400 million from $500 million;

• Replace the quarterly EBITDA-based financial covenants that previously required Cloud Peak Energy Resources to maintain defined minimum levels of interest coverage and comply with a maximum net secured debt leverage ratio with a new monthly minimum liquidity covenant that requires the company to maintain a minimum liquidity of $125 million as of the last day of each month;

• Revise the permitted debt covenant and permitted lien covenant to allow the issuance of up to $350 million of second-lien debt; and

• Revise various negative covenants and baskets that would apply to incurring debt and making investments, asset dispositions and restricted payments, among other things.

The maturity remains Feb. 21, 2019.

Cloud Peak Energy is a Gillette, Wyo.-based coal producer.

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