Alpha Natural Resources to launch $110 million revolver Friday

By Sara Rosenberg

New York, Jan. 10 - Alpha Natural Resources is scheduled to hold a bank meeting on Friday regarding a new $110 million senior secured revolver with an interest rate of Libor plus 350 basis points, according to a syndicate source. PNC is the lead bank on the deal.

There is a 50 basis point unused commitment fee on the revolver.

Security for the loan is receivables, inventory and substantially all hard assets of the Kingswood Mine, the syndicate source told Prospect News.

The company is being formed to acquire certain assets that will allow it to become a mining entity in the Appalachia region, the syndicate source explained. With the revolver and some subordinated debt, that will include seller notes, the company will acquire coal assets of Pittston, coal assets of Coastal and domestic operations of AMCI.

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