Mission Coal secures interim access to $75 million of DIP financing

By Caroline Salls

Pittsburgh, Oct. 17 – Mission Coal Co., LLC obtained interim court approval to access a total of $75 million of a proposed $202.94 million in debtor-in-possession financing, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Northern District of Alabama.

The final hearing is scheduled for Nov. 7.

As previously reported, the DIP facility includes $54.5 million in new-money term loan commitments and a roll-up of Mission Coal’s pre-bankruptcy first-lien obligations.

The DIP financing lenders are MC Southwork LLC and Coal Specialty Funding, LLC.

The facility will mature on the earliest of six months from the filing date, 25 days after entry of the interim order if a final order has not been entered, the effective date of a Chapter 11 plan, conversion of the cases to liquidation proceedings and the acceleration of the loans.

Interest will accrue at Libor plus 975 basis points with a 1% floor if paid in cash, or Libor plus 1,200 bps with the same floor if paid in kind.

A total of $25 million of the new-money financing and $50 million of the roll-up amount will be available to the company on an interim basis.

Mission is a Kingsport, Tenn.-based coal company. The company filed bankruptcy on Oct. 14 under Chapter 11 case number 18-04177.

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