Contura Announces Special Cash Dividend
BRISTOL, Tenn., June 19, 2017 – Contura Energy, Inc. today announced that its Board of Directors has authorized and declared a special cash dividend of approximately $92.8 million in aggregate (the “Dividend”) (based on the number of outstanding shares on the date hereof), payable to eligible holders of record of its common stock as of the close of business on July 5, 2017 (“Record Date”). In addition, pursuant to the terms of the Company’s management incentive plan, a dividend equivalent in the amount of approximately $8.0 million in aggregate (based on the number of outstanding shares on the date hereof) will be awarded to plan participants. The aggregate amount of the Dividend and dividend equivalent will be $100.7 million (the “Payment Cap”), and the portion of that aggregate amount that will be paid as the Dividend will depend on the number of shares outstanding as of the Record Date, and will be the maximum amount payable subject to the Payment Cap.
Based upon the number of outstanding shares on the date hereof, the Company estimates that the Dividend payable to eligible stockholders will be approximately $9.00 per share of common stock, though this amount may vary based on the number of outstanding shares as of the Record Date. The Company intends to calculate and announce the final per-share amount promptly following the Record Date. The per-share amount will be determined by dividing the aggregate amount of the Dividend by the number of outstanding common shares held by eligible stockholders as of the close of business on the Record Date and rounding the resulting amount down to the nearest whole cent per share.
The Dividend is expected to be paid on July 13, 2017.
In connection with the payment of the Dividend, the Company entered into amendments to the debt agreements governing its term loan credit facility and asset-based revolving credit facility to, among other things, permit an aggregate amount of $150.0 million of cash to be used for the (i) payment of a one-time cash dividend on its common stock no later than July 28, 2017, and (ii) repurchase of its common stock at any time no later than December 31, 2017. In determining whether to use any remaining capacity, after payment of the Dividend, available to the Company under its debt agreements to make payments on or repurchases of its common stock at future dates, the Board of Directors will take into account any legal or contractual limitations, actual and anticipated future earnings, cash flow, debt service and capital requirements, tax considerations, the trading price of the Company’s common stock, and other factors that the Board may deem relevant.
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, including but not limited to statements regarding Contura’s expectations regarding the calculation and payment of a special dividend. 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.
Forward-looking statements in this news release or elsewhere speak only as of the date made. 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. Contura has no duty to, and does not intend to, update or revise the forward-looking statements in this news release or elsewhere after the date this release is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments disclosed in any forward-looking statement made in this news release may not occur.