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Murray/Foresight Energy to launch $2.25 billion of term loans Friday
By Sara Rosenberg
New York, March 16 – Murray Energy Corp. and Foresight Energy LP are scheduled to hold a bank meeting at 10:30 a.m. ET in New York on Friday to launch $2.25 billion of term loan B debt, according to a market source.
Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are the bookrunners on the deal.
The debt consists of a $1.6 billion term loan B at Murray Energy and a $650 million term loan B at Foresight Energy, the source said.
Proceeds will be used to help fund Murray Energy’s acquisition of an 80% voting interest in Foresight Energy GP LLC with a 77.5% interest in the incentive distribution rights and about 50% of the limited partner interest in Foresight Energy LP, to refinance Murray Energy’s existing term loan B, and to refinance Foresight Energy’s existing term loan and revolver.
Other funds for the transaction will come from a $125 million asset-based revolver at Foresight Energy and the issuance by Murray Energy of about $860 million of senior secured second-lien notes, the company disclosed in a news a release.
In addition, Murray Energy plans to amend its existing asset-based credit facility, and to solicit consents to amend the indentures relating to its existing 9˝% second-lien notes due 2020 and its existing 8 5/8% second-lien notes due 2021, to permit the acquisition and related financing transactions.
The acquisition will constitute a change-of-control event for the existing Foresight 7 7/8% notes due 2020, unless the indenture is amended. Foresight expects to refinance with debt any notes tendered pursuant to a change-of-control offer.
St. Clairsville, Ohio-based Murray Energy and St. Louis-based Foresight Energy are coal companies.
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