Contura Announces Successful Refinancing Through $400 Million Term Loan Credit Facility
Transaction Includes the Redemption of 10.00% Senior Secured First Lien Notes Due 2021
BRISTOL, Tenn., March 17, 2017 – Contura Energy, Inc., a leading U.S. coal supplier, today announced the completion of its refinancing process through the entering of a $400 million term loan credit facility, the marketing of which was previously announced in late February. Through this refinancing, Contura extended its debt maturity profile by two and a half years, to 2024. The interest rate for the new term loan facility is LIBOR plus five percent, with a one percent LIBOR floor.
In connection with the transaction, Contura will redeem all of its outstanding 10.00% Senior Secured First Lien Notes due 2021. The aggregate principal amount outstanding of the notes is $300 million. The redemption price for the notes will be equal to 107.5% of the principal amount thereof, including accrued interest, for a total payment to holders of the notes of approximately $329 million in aggregate. The redemption of the notes is scheduled to occur on April 17, 2017.
The Company intends to fund the redemption with borrowings under its new term loan facility. On and after the redemption date, the notes will no longer be deemed outstanding and interest will cease to accrue thereon.
As previously announced, the proceeds of the term loan facility will also be used to repay certain other long-term liabilities, pay related fees, costs and expenses, and for general corporate purposes.
Jefferies Finance LLC acted as Lead Left Arranger and Bookrunner for the new term loan facility. Wilmington Trust, National Association is the trustee for the notes and is serving as the paying agent for the redemption of notes transaction.
ABOUT CONTURA ENERGY
Contura Energy is a private, Tennessee-based company with affiliate mining operations across multiple major coal basins in Pennsylvania, Virginia, West Virginia and Wyoming. With customers across the globe, high-quality reserves and significant port capacity, Contura Energy reliably supplies both metallurgical coal to produce steel and thermal coal to generate power. For more information, visit www.conturaenergy.com.
This news release includes forward-looking statements. These forward-looking statements are based on Contura’s expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Contura’s control. New uncertainties and risks arise from time to time, and it is impossible for Contura to predict these events or how they may affect the Company. Forward-looking statements in this news release or elsewhere speak only as of the date made. Contura has no duty to, and does not intend to, update or revise the forward-looking statements in this news release after the date it is issued. In light of these risks and uncertainties, investors should keep in mind that the results, events or developments disclosed in any forward-looking statement made in this news release may not occur.