Foundation Coal launches $835 million credit facility

By Sara Rosenberg

New York, June 6 - Foundation Coal Holdings Inc. held a bank meeting on Tuesday to launch its proposed $835 million five-year credit facility, according to a market source.

Citigroup is the lead bank on the deal.

The facility consists of a $500 million revolver and a $335 million term loan A, with both tranches talked at Libor plus 125 basis points, the source said.

Proceeds will be used to refinance existing debt.

Foundation Coal is a Linthicum Heights, Md.-based coal producer.

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