Alpha Natural amends credit facility covenants, lifts permitted debt

By Marisa Wong

Madison, Wis., May 13 - Alpha Natural Resources, Inc. entered into an amendment to its fourth amended and restated credit agreement dated May 22, 2013 with Citicorp North America, Inc. as administrative agent on May 7, according to an 8-K filing with the Securities and Exchange Commission.

The amendment suspends the interest coverage ratio until the first quarter of 2016, replaces the senior secured leverage ratio with a first-lien senior secured leverage ratio, reduces the size of the restricted payment basket and extends the minimum liquidity covenant through the end of 2015.

In addition, the amendment increases by $400 million the amount of additional debt permitted to be incurred from either the credit agreement's accordion feature or a notes offering and requires the first $800 million of additional debt from the accordion or a notes offering to be unsecured debt or second-lien secured debt.

Alpha Natural Resources supplies metallurgical coal to the steel industry and thermal coal to generate power.

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