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Murray Energy wraps restructuring, swaps 71% of notes, 97% of loans
New York, July 3 – Murray Energy Corp. completed its debt restructuring, exchanging 71% of its 11¼% senior secured notes due 2021 and 97% of its term loans, according to a news release.
The company issued $495.4 million of new notes and also entered into an amended and restated asset-based lending credit agreement that includes a $135 million revolver and a $90 million last-out term loan, both due in 2021.
Murray carried out the restructuring under the previously announced transaction support agreement entered into on June 4 with some of its noteholders and bank lenders. More lenders subsequently joined the agreement, increasing the bank participation from 61% initially.
The term loans were exchanged for term loans under a new superpriority credit agreement due 2022.
The 11¼% notes were exchanged for new 12% senior secured notes due 2024 at the rate of $740 of new notes for each $1,000 principal amount of existing notes.
The new notes pay interest of 9% in cash and 3% in kind.
The indenture for the 11¼% notes was amended to permit the transactions.
The new notes will rank senior to the existing notes but junior to the existing and new term loans.
In addition, the new notes and new term loans are guaranteed by Murray Kentucky Energy, Inc. and its subsidiaries and Murray South America, Inc. in addition to Murray Energy’s subsidiaries that guarantee its obligations under the 11¼% notes and existing term loans.
The new notes and new term loans will also be secured by a pledge of 100% of the stock of Murray South America, Inc. and Murray Kentucky Energy, Inc., liens on assets of Murray Kentucky Energy, Inc., and its subsidiaries, certain of Murray Energy’s indirect equity interests in entities with operations in Colombia and Murray Energy’s indirect equity interests in Javelin Global Commodities Holdings LLP, a leading marketing and trading firm for thermal coal and other commodities, and the primary marketer of Murray Energy’s coal for international export.
Murray Energy is a Saint Clairsville, Ohio, coal company.
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