VANCOUVER (miningweekly.com) – US coal miner Arch Coal has successfully completed an amendment to its credit agreement to reduce the interest rate on its senior secured term loan facility, the company reported on Monday.
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% and 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, Arch advised in a press release.
"We are pleased to have completed this amendment, which further improves our capital structure and marks the company's second successful refinancing this year. We appreciate the ongoing support of our lenders, as well as the strong vote of confidence in Arch and its outlook for future success,” said Arch CFO John Drexler.
Credit Suisse acted as sole lead arranger on the transaction.