Sunrise Coal gets $425 million revolver, term loan for Vectren purchase

By Susanna Moon

Chicago, Sept. 3 – Hallador Energy Co.’s wholly-owned subsidiary Sunrise Coal LLC obtained a $250 million revolver and a $175 million term loan with PNC Bank as administrative agent for its acquisition of Vectren Fuels Inc., according to an 8-K filing with the Securities and Exchange Commission.

Interest on the loans is initially Libor plus 350 basis points, with a spread of Libor plus 225 bps to 350 bps based on leverage.

The maximum leverage ratio is 3.25 times using funded debt to EBITDA.

Sunrise said it entered into swap agreements to fix the Libor component of the interest rate to achieve an effective fixed rate of no greater than 5% or less on 100%, or $175 million, of the term loan and on $100 million of the revolver with 10% step downs each quarter beginning March 31, 2016.

The term loan requires annual amortization during the five years at 10%, 15%, 15%, 20% and 20% with a bullet at maturity.

Sunrise Coal closed its acquisition of Vectren Fuels for $320 million on Aug. 29.

Sunrise Coal is a Terre Haute, Ind.-based coal producer.

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