Westmoreland, Oxford enter into term loan agreements via U.S. Bank

By Toni Weeks

San Luis Obispo, Calif., Jan. 7 – Westmoreland Resource Partners, LP entered into a financing agreement on Dec. 31 with U.S. Bank NA as collateral agent and administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The agreement permits borrowings by subsidiary Oxford Mining Co. LLC of an initial term loan of $175 million and delayed draw term loans of $120 million.

Loans under the financing agreement, which matures Dec. 31, 2018, initially bear interest at Libor plus 850 basis points.

According to the filing, the borrower had not incurred any borrowings under the agreement other than those under the initial term loan.

Additionally, Westmoreland Coal Co. also announced the completion of its $30 million acquisition of Oxford Resources GP, LLC and the contribution of some royalty-bearing coal reserves to Oxford Resource Partners, LP in return for 4,512,500 Oxford common units, as well as the completion of its acquisition of Buckingham Coal Co., LLC.

In connection with the Oxford acquisition, Oxford Resource Partners, LP’s name was changed to Westmoreland Resources Partners, LP, and Oxford Resources GP, LLC’s name was changed to Westmoreland Resources GP, LLC.

Westmoreland Resource Partners is based in Columbus, Ohio.

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