Warrior Met gives results of tender offers for 7 7/8% notes due 2028

By Marisa Wong

Los Angeles, Sept. 8 – Warrior Met Coal, Inc. announced the results of its pair of concurrent cash offers launched on Aug. 9, each to purchase up to $150 million principal amount of the company’s $302,618,000 of 7 7/8% senior secured notes due 2028 (Cusips: 93627CAB7, U93537AC9).

Each offer expired at 5 p.m. ET on Sept. 7.

Restricted payment offer

In the restricted payment offer, the company was offering to purchase up to $150 million of the notes at 103 plus accrued interest to, but excluding, the repurchase date.

As of the expiration date, $200,000 of the notes were tendered under the restricted payment offer, according to a Friday press release.

An automatic proration factor of 49.5674% was applied to the $200,000 of notes tendered, resulting in $99,000 of notes accepted for purchase. Payment for those notes is to be made on Sept. 8.

The remaining $101,000 of tendered notes will be returned to the tendering noteholder.

After completion of this offer, Warrior Met will have the ability from time to time in the future to make one or more restricted payments totaling $299,901,000 in the form of special dividends to holders of the company’s common stock and/or repurchases of the company’s common stock.

Tender offer

In the separate tender offer, the company was offering to purchase up to $150 million of the notes at 104.25 plus accrued interest to, but excluding, the repurchase date.

As of the expiration date, holders had tendered $294.77 million of the notes.

An automatic proration factor of 49.5674% was applied to $294.77 million of notes tendered, resulting in $146,002,000 of notes accepted for purchase. Payment for the accepted notes will be made on Sept. 11.

The remaining $148,768,000 of tendered notes will be returned to the tendering holders.

D.F. King & Co., Inc. (212 269-5550, 800 431-9645 or hcc@dfking.com) acted as the information and tender agent for each offer.

Goldman Sachs & Co. LLC (212 902-5962, 800 828-3182 or GS-LM-NYC@gs.com) was the dealer manager for the tender offer. There was no dealer manager for the restricted payment offer.

Warrior Met Coal is a Brookwood, Ala.-based metallurgical coal producer.

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