Murray Metallurgical eyes approval of $68.6 million financing package

By Caroline Salls

Pittsburgh, Feb. 13 – Murray Metallurgical Coal Holdings, LLC requested court approval to obtain $68.6 million in debtor-in-possession financing from its take-back lenders and parent Murray Energy Holdings Co., according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Ohio.

Specifically, Murray Metallurgical is seeking court approval to obtain a first-out senior DIP facility not to exceed $50.4 million and, upon the signing of a stalking horse purchase agreement in connection with a sale of its Maple Eagle assets, a junior DIP facility consisting of up to $18.2 million of new-money term loans, which includes amounts necessary to fund Maple Eagle and debtor Murray Alabama Minerals, LLC.

The financing will be used to pay the costs associated with the Murray Metallurgical cases, including the start-up costs related to the resumption of mining operations at Oak Grove.

Wilmington Savings Fund Society, FSB will act as administrative agent and collateral agent for both facilities.

The senior facility will mature on the earliest of the six-month anniversary of the closing date, 33 days after the bankruptcy filing date if the final order has not been entered, the closing of a sale of the company’s assets, other than the Maple Eagle sale, acceleration of the loans and termination of the commitments and the effective date of a Chapter 11 plan.

The junior facility has the same maturity date, except that the sale closing is not a condition for maturity of that loan.

Interest will accrue on the senior facility at a rate of 14.5% and on the junior facility at 16.5%.

Murray Metallurgical is based in St. Clairsville, Ohio. The company filed bankruptcy on Feb. 11 under Chapter 11 case number 20-10390.

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