Oxford Resource gets $175 million first- and second-lien facility

By Sara Rosenberg

New York, June 25 - Oxford Resource Partners LP closed on a new $175 million credit facility, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

The facility consists of a $25 million revolver due August 2015, a $75 million first-lien term loan due August 2015 and a $75 million second-lien term loan due December 2015.

Pricing on the first-and second-lien debt is Libor plus an unspecified spread. Of the total interest on the second-lien debt, 575 basis points will be paid in kind.

The second-lien loan has a $10 million accordion feature.

The first-lien debt has an extension option to May 2016 and the second-lien loan has an extension option to September 2016.

Financial covenants in the credit facility include a senior leverage ratio, a total leverage ratio and a fixed charge coverage ratio.

Cerberus Business Finance LLC is the administrative agent on the first-lien debt and Obsidian Agency Services Inc. is the administrative agent on the second-lien loan.

Proceeds from the new financing, which was completed on June 24, are being used to refinance existing bank debt and for general corporate purposes.

Oxford Resource is a Columbus, Ohio-based low-cost producer of high-value steam coal.

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