Oxford spent nearly the first half of 2013 negotiating new credit facilities with lenders to replace a $115-million revolving credit line scheduled to mature  in July and another $60-million term loan that was to mature in July 2014. Oxford had a total of $147.5 million in borrowings outstanding as of March 31, limiting its financial flexibility to be more active in the market.

Now, Oxford has secured $175 million of new credit facilities that consist of the following: a first lien $75-million term loan and $25-million revolving credit facility arranged by Cerberus Capital Management LP and a second lien $75-million term loan arranged by Tennebaum Capital Partners LLC. The new first lien facility matures in August 2015 with an optional extension to May 2016 if certain unspecified conditions are met. The second lien facility matures in December 2015 and can be extended until September 2016 once certain conditions are met.

Both new financing agreements contain “customary covenants,” Oxford said in a U.S. Securities and Exchange Commission filing that precludes the company from making any unitholder distributions during the term of the new facilities.

Evercore Partners served as sole financial adviser and placement agent to Oxford for the new facilities. By extending the maturity profile of Oxford’s debt and increasing availability under its revolving loan, “We have significantly enhanced our liquidity as we continue to focus on increasing productivity across our operations,” said Charles Ungurean, Oxford president and CEO.

Oxford said it had failed, as of May 15, to comply with certain financial covenants in the former credit agreement that triggered a default by the company. That meant its lenders could have demanded that Oxford repay all outstanding amounts under the accord. Instead, however, Oxford and its lenders worked out a “forbearance agreement” that gave the parties more time to reach a new financial arrangement.

Oxford plans to produce 6 million to 6.5 million tons of high-sulfur coal this year. If the market warrants, the company has the ability to ramp up output rather quickly and inexpensively by another 10% or so, according to Ungurean.