Murray Energy launches $1.02 billion term B at Libor plus 450 bps

By Sara Rosenberg

New York, Nov. 7 - Murray Energy Corp. launched on Thursday its $1.02 billion six-year first-lien term loan B with price talk of Libor plus 450 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan B has 101 soft call protection for one year, the source said.

Commitments are due on Nov. 19.

The company's $1.62 billion credit facility also includes a $200 million ABL revolver and a $400 million seven-year second-lien term loan.

The second-lien term loan is not on offer as it was already placed, and is priced at Libor plus 850 bps with a 1% Libor floor, the source continued.

Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of Consolidation Coal Co. from Consol Energy Inc. for $3.5 billion, including $2.4 billion of Consol balance sheet liabilities.

Closing is expected by year-end, subject to expiration of the Hart Scott Rodino Antitrust Improvements Act waiting period and other customary conditions. There is no financing condition.

Murray Energy is a St. Clairsville, Ohio-based coal company.

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