Contura Energy to launch $600 million term loan on Wednesday

By Sara Rosenberg

New York, Sept. 7 – Contura Energy Inc. is scheduled to hold a bank meeting at 11 a.m. ET on Wednesday to launch a $600 million seven-year senior secured first-lien term loan, according to a market source.

Jefferies LLC, Barclays, Citigroup Global Markets Inc. and BMO Capital Markets Corp. are the lead arrangers on the deal.

The term loan has 101 soft call protection for six months, the source said.

Proceeds will be used to refinance the combined entity’s balance sheet in connection with the closing of the announced merger with Alpha Natural Resources Holdings Inc.

Under the agreement, Alpha shareholders will receive 0.4071 of a Contura common share for each ANR Inc. class C-1 share and each Alpha Natural Resources Holdings Inc. common share they own, representing about 46.5% ownership in the merged entity.

Closing of the merger is expected in the third quarter, subject to Alpha shareholder approval and other customary conditions.

Contura is a Bristol, Tenn.-based coal supplier with affiliate mining operations. Alpha is a Bristol, Tenn.-based coal miner. The combined entity will retain the Contura Energy name.

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