Alpha Natural Resources closes $150 million facility for acquisition

By Sarah Lizee

Olympia, Wash., Oct. 24 – Alpha Natural Resources (ANR Inc.) used borrowings under a $150 million credit facility to close the sale of substantially all idle assets to Lexington Coal, according to a press release.

“The financing facilitating the transaction was provided by certain of our key shareholders, who were willing to offer very competitive terms and, in doing so, make a further commitment to Alpha's future,” Alpha chief executive officer David Stetson said in the release.

The credit facility bears interest at Libor plus 700 basis points and contains covenant-light terms and minimum call protection.

“Our team, along with Moelis, did an excellent job of presenting Alpha's story to the investment community and we received multiple proposals for financing, but the offer from current shareholders provided Alpha with the greatest flexibility and lowest borrowing costs of all the options that were considered,” Stetson added.

Alpha Natural Resources is a Kingsport, Tenn.-based coal miner.

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