Alliance Resource gets $537.75 million amended, restated revolver

By Sarah Lizee

Olympia, Wash., March 13 – Alliance Resource Partners, LP and subsidiary Alliance Resource Operating Partners, LP amended and restated their credit agreement with JPMorgan Chase Bank, NA as administrative agent on March 9, providing for a $537.75 million revolver, according to an 8-K filing with the Securities and Exchange Commission.

The amended revolver will be reduced to $459.5 million on May 23, 2021.

The loan includes a sublimit of $125 million for the issuance of letters of credit and a sublimit of $15 million for swingline borrowings.

The maturity date is March 9, 2024.

The amended facility replaces the $494.75 million that would have expired on May 23, 2021.

Borrowings bear interest at Libor plus 200 basis points to 285 bps, based on the consolidated debt to consolidated cash flow ratio.

There is also a 35 bps commitment fee.

The credit agreement requires us to maintain a debt to cash flow ratio of not more than 2.5 to 1.0, a cash flow to interest expense ratio of not less than 3 to 1 and a first-lien debt to cash flow ratio of not more than 1.5 to 1.0, in each case, during the four most recently ended fiscal quarters.

Alliance Resource is a Tulsa, Okla.-based diversified natural resource company that generates income from coal production and oil and gas mineral interests.

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