Westmoreland plans to launch new credit facility on Wednesday morning

By Sara Rosenberg

New York, Nov. 14 – Westmoreland Coal Co. set a bank meeting for 10 a.m. ET on Wednesday to launch a new credit facility, according to a market source.

BMO Capital Markets is the lead on the deal.

Proceeds will be used to refinance existing notes.

The refinancing is being done in connection with the company’s combination with Oxford Resource Partners LP.

Under the agreement, Westmoreland will acquire Oxford’s general partner, Oxford Resources GP LLC, for $30 million plus an additional $3.5 million if a specified coal acquisition is completed within one year of the purchase agreement. In addition, Westmoreland will contribute some royalty-bearing coal reserves to Oxford in return for Oxford common units.

With the transaction, Oxford’s name will be changed to Westmoreland Resource Partners LP and Oxford Resources GP’s name will be changed to Westmoreland Resources GP LLC.

Closing is expected in the fourth quarter.

Englewood, Colo.-based Westmoreland and Columbus, Ohio-based Oxford are coal companies.

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