Alliance Resource gets $479.75 million revolver, $50 million term loan

By Wendy Van Sickle

Columbus, Ohio, Feb. 2 – Alliance Resource Partners LP wholly-owned subsidiary Alliance Resource Operating Partners, LP entered into a fourth amended and restated credit agreement with JPMorgan Chase Bank, NA as administrative agent on Jan. 27 providing for a $479.75 million revolving credit facility and a $50 million term loan, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility replaces the company’s credit facility that provided for a $700 million revolver and a $50 million term loan. The replaced credit facility would have matured May 23, 2017. The term loan continues to mature on May 23, 2017, and the revolver matures on May 23, 2019.

The revolver’s termination date will accelerate to this May 23 if, on or before May 13, the partnership has not satisfied a condition that would result in at least $100 million of unused availability.

It would terminate on March 27, 2018 if the company has not fully redeemed, refinanced or delivered sufficient amounts into an escrow account to repay its 6.72% senior notes, series B, due June 26, 2018.

Pricing on the revolver is Libor plus 200 basis points to 285 bps, depending on consolidated leverage ratio, and there is a commitment fee of 35 bps.

Interest on the term loan is Libor plus 115 bps to 190 bps.

The revolver has a $125 million sublimit for letters of credit and a $15 million sublimit for swingline loans.

JPMorgan, Wells Fargo Securities, LLC and Citigroup Global Markets Inc. are the joint lead arrangers and are the joint bookrunners along with Bank of Oklahoma. Wells Fargo Bank, NA, Citibank, NA and Bank of Oklahoma are the syndication agents. Branch Banking and Trust Co., Fifth Third Bank and PNC Bank, NA are the documentation agents.

The partnership must comply with a minimum ratio of consolidated debt to consolidated cash flow of 2.25 times and a minimum ratio of consolidated cash flow to consolidated interest expense of 3 times.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Alliance Resource is a Tulsa, Okla.-based coal company.

© 2015 Prospect News.
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