Moody’s rates Canyon Resource, loans, notes

Moody's Investors Service said it assigned Canyon Resource Holdings LLC (formerly Bowie Resource Holdings LLC) a Caa1 corporate family rating, Caa1-PD probability of default rating, a B3 rating to the new first-lien senior secured notes and Caa2 to the second-lien term loan.

Canyon Finance Corp. is a co-issuer.

Canyon entered into a partnership services agreement with Murray Energy Corp., under which Murray's Lila Canyon mine will supply roughly 3 million tons of coal per year to Canyon's current domestic and international customers.

Proceeds from the debt raise, along with the new secured facility and new private equity investment, will be used to refinance the existing indebtedness at Bowie Resource Partners, LLC, and to buy out the current equity ownership of Galena Private Equity, owned in turn by Trafigura Beheer BV, a multi-national commodity trading company.

Upon close of the transactions, Moody's said it would withdraw Bowie's existing ratings.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.