ST. LOUIS, Sept. 25, 2017 /PRNewswire/ -- Arch Coal,
Inc. (NYSE: ARCH) announced today that it has successfully
completed an amendment to its credit agreement to reduce the
interest rate on its senior secured term loan facility.
"We are pleased to have completed this amendment, which further
improves our capital structure and marks the company's second
successful refinancing this year," said John T. Drexler, Arch's chief financial officer.
"We appreciate the ongoing support of our lenders, as well as the
strong vote of confidence in Arch and its outlook for future
success."
The new interest rate for the $300
million term loan facility is LIBOR plus 325 basis points –
reflecting a 75 basis point reduction from its previous level. The
LIBOR floor remains at 1 percent. There is no change to the
maturities as a result of this repricing amendment. The reduction
in the interest rate is expected to generate annual cash interest
savings of more than $2 million.
Credit Suisse acted as sole lead arranger on the
transaction.
U.S.-based Arch Coal, Inc. is a top coal producer for the global
steel and power generation industries. Arch operates a streamlined
portfolio of large-scale, low-cost mining complexes that produce
high-quality metallurgical coals in Appalachia and low-emitting
thermal coals in the Powder River Basin and other strategic supply
regions. For more information, visit www.archcoal.com.
Forward-Looking Statements: This press release contains
"forward-looking statements" – that is, statements related to
future, not past, events. In this context, forward-looking
statements often address our expected future business and financial
performance, and often contain words such as "expects,"
"anticipates," "intends," "plans," "believes," "seeks," or "will."
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain. For us, particular
uncertainties arise from changes in the demand for our coal by the
domestic electric generation industry; from legislation and
regulations relating to the Clean Air Act and other environmental
initiatives; from operational, geological, permit, labor and
weather-related factors; from fluctuations in the amount of cash we
generate from operations; from future integration of acquired
businesses; and from numerous other matters of national, regional
and global scale, including those of a political, economic,
business, competitive or regulatory nature. These uncertainties may
cause our actual future results to be materially different than
those expressed in our forward-looking statements. We do not
undertake to update our forward-looking statements, whether as a
result of new information, future events or otherwise, except as
may be required by law. For a description of some of the risks and
uncertainties that may affect our future results, you should see
the risk factors described from time to time in the reports we file
with the Securities and Exchange Commission.
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SOURCE Arch Coal, Inc.