Drummond seeks $600 million credit facility

By Sara Rosenberg

New York, Jan. 11 - Drummond Co. Inc. is in-market with a $600 million all pro rata credit facility, according to a market source.

Citigroup and Merrill Lynch are the lead banks on the deal, with Citi the left lead.

The facility consists of a $400 million revolver and a $200 million term loan A, the source said.

Price talk on the tranches depends on ratings, ranging anywhere from Libor plus 100 to 150 basis points for ratings ranging from Ba1/BB+ through Ba3/BB, the source added.

Proceeds from the credit facility, which launched with a bank meeting on Tuesday, will be used to refinance existing debt.

Drummond is a Birmingham, Ala., coal company.

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