Alpha Metallurgical Resources Inc. successfully refinanced its Asset-Based Revolving Credit Facility (ABL), which was previously set to expire in April 2022. The new $155 million facility will mature in December 2024 and includes $125 million committed availability for letters of credit and another $25 million uncommitted on a cash collateralized basis. Proceeds from this ABL will be the same as the prior facility: issuance of letters of credit, working capital, and incremental liquidity needs.
“Though the total capacity is smaller than our prior ABL, this new facility more than covers our letters of credit requirements and provides additional borrowing capacity,” President and CFO Andy Eidson said. “Coupled with our plans to continue substantially reducing our long-term debt level, we believe today’s closing is another important step in simplifying our balance sheet and further strengthening the company financially.”
Under the terms of the agreement, interest on letters of credit will be 5.25%. Interest on any loans drawn on the new facility would be calculated using the secured overnight financing rate (SOFR).