Alpha Natural extends, reduces some revolver commitments, ups interest

By Tali Rackner

Norfolk, Va., Sept. 25 – Alpha Natural Resources, Inc. entered into a fifth amendment to its amended and restated credit agreement on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

The amendment extends the maturity of roughly 75% of previous revolving credit facility commitments to Sept. 30, 2017 from June 30, 2016. The remaining 25%, or $276 million, will still mature on June 30, 2016.

In addition, it reduces the amount of the extended revolver facility commitments by 25% to $618 million and increases the interest rate payable to holders of the extended revolver facility on borrowings under the revolving credit facility.

The amendment also makes other changes to the credit agreement, including eliminating the interest coverage financial covenant previously scheduled to apply starting in the first quarter of 2016, extending the minimum liquidity covenant through Sept, 30, 2017, accelerating the date by which certain real property is added as collateral and adding provisions to facilitate future extensions and refinancings under the credit agreement.

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

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