Contura Energy enters commitment letter for $561.8 million term loan

By Wendy Van Sickle

Columbus, Ohio, May 22 – Contura Energy Inc. entered into an amended senior secured debt commitment letter for a $561.8 million five-year senior secured term loan on May 21, according to a copy of the letter filed with the Securities and Exchange Commission.

On May 16, the company had entered into a letter for the loan in an original amount of $555 million.

The letter is with certain of the company’s existing shareholders, who committed to provide the loan with an original issue discount of 97.

The interest rate is expected to be Libor plus 700 basis points for the first two years after closing, increasing to Libor plus 800 bps thereafter, with a 2% Libor floor.

Proceeds will be used to repay in full all outstanding amounts under the company’s existing term loan credit agreement and to pay fees and expenses.

Contura is a Bristol, Tenn.-based coal supplier with affiliate mining operations.

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