James River amends loan, increasing interest rate

By Sara Rosenberg

New York, June 5 - James River Coal Co. amended its credit facility, increasing the interest rate to Libor plus 300 basis points for May 30 through Dec. 31, according to an 8-K filed with the Securities and Exchange Commission Monday.

In addition, interest can increase to Libor plus 325 bps if ratings fall below B1/B.

Furthermore, the method of calculating the leverage ratio, senior secured leverage ratio and fixed-charge coverage ratio for the first three fiscal quarters of 2006 was changed so that actual to-date 2006 consolidated EBITDA will be annualized, rather than using the trailing four quarters consolidated EBITDA.

Lastly, the amendment increased the amount of permitted debt in connection with capital expenditures to $10 million from $5 million.

The amendment was completed on May 30.

PNC Bank is the administrative agent on the deal.

James River is a Richmond, Va.-based miner and seller of bituminous, steam and industrial-grade coal.

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