Murray Energy to launch $1.62 billion credit facility in November

By Sara Rosenberg

New York, Oct. 31 - Murray Energy Corp. is expected to hold a bank meeting in early November to launch a $1.62 billion credit facility, according to a market source.

Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are the lead banks on the deal.

The facility consists of a $200 million ABL revolver, a $1.02 billion first-lien term loan B and a $400 million second-lien term loan, the source said.

The second-lien term loan will be pari passu with the company's existing 8 5/8% notes.

Proceeds will be used to help fund the acquisition of Consolidation Coal Co. from Consol Energy Inc. for $3.5 billion, including $2.4 billion of Consol balance sheet liabilities.

Closing is expected by year-end, subject to expiration of the Hart Scott Rodino Antitrust Improvements Act waiting period and other customary conditions. There is no financing condition.

Murray Energy is a St. Clairsville, Ohio-based coal company.

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