Walter Energy plans amendment to upsize revolver by $61.2 million

By Sara Rosenberg

New York, July 8 – Walter Energy Inc. expects to enter into an amendment on Tuesday to get a $61.2 million additional tranche of revolving credit facility commitments due in 2017, according to an 8-K filed with the Securities and Exchange Commission.

With the additional tranche, the revolver size will total $375 million.

The amendment is conditioned on the company pricing at least $275 million of bonds.

Walter also announced that it plans on repaying $298.1 million of its revolver borrowings using proceeds from a $320 million add-on senior secured notes offering, a source said.

Upon the paydown, the lenders’ commitments under the revolver will be terminated, the filing added.

In addition, on Monday the company amended its credit facility to provide that the financial maintenance covenant will be unlimited for the quarter ended June 30, 2014 so long as at least $275 million of first-lien notes are issued within seven days.

Walter is a Birmingham, Ala.-based pure-play metallurgical coal producer for the global steel industry.

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