Westmoreland enters into $125 million loan to finance mine purchase

By Tali Rackner

Norfolk, Va., Feb. 1 – Westmoreland Coal Co. subsidiary Westmoreland San Juan, LLC entered into a $125 million structured loan with a subsidiary of PNM Resources Inc. to finance a portion of its acquisition of the San Juan mine in Farmington, N.M., according to a press release.

The loan is a $125 million senior secured non-revolving term loan maturing Feb. 1, 2021.

Initial interest is Libor plus 725 basis points.

There are no prepayment penalties, and the loan is structured so that more than half the balance is due to be repaid in the first two years.

The total purchase price for the mine is about $127 million.

Westmoreland is an Englewood, Colo.-based coal company.

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