James River Coal wins interim access to $80 million of DIP financing

By Caroline Salls

Pittsburgh, April 9 - James River Coal Co. received court approval to use $80 million of a proposed $110 million of debtor-in-possession financing on an interim basis, according to a Wednesday filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The final hearing is scheduled for May 7.

Cantor Fitzgerald Securities is the administrative agent and collateral agent on the DIP loan. Deutsche Bank Securities, Inc. is the arranger and bookrunner.

The facility will mature nine months from closing.

Interest will be Libor plus 850 basis points with a 1% Libor floor for Libor loans and Base rate plus 750 bps for Base rate loans.

The company is required to pay a $40,000 agency fee and a $155,636 funding fee. The loan carries an original issue discount of 96.5% of the principal amount.

James River, a coal company based in Richmond, Va., filed bankruptcy on April 7. The Chapter 11 case number is 14-31848.

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