Photo by: Duane Daws
TORONTO (miningweekly.com) – Indebted coal producer Walter Energy on Tuesday launched a private offering of $320-million of 9.5% senior secured notes due in 2019.
The Birmingham, Alabama-based company planned to issue the notes as a follow-on to the $450-million aggregate principal amount of its 9.5% senior secured notes due in 2019, which were issued on September 27, 2013, and Walter Energy's $200-million aggregate principal amount of 9.5% senior secured notes due in 2019, which were issued on March 27.
Walter Energy said it planned to use the net proceeds of the offering to repay $298.1-million of indebtedness outstanding under its revolving credit facility and to pay related fees and expenses.
In a regulatory filing, Walter also said on Tuesday that it took a $7-million charge related to severance costs for idling its Canadian operations in April, which included the Wolverine and Brazion coal mines, in British Columbia.
Walter's NYSE-listed stock on Tuesday lost $0.53 apiece in value, to close at $5.62, having lost 62.57% of its value since the start of the year, impacted by stubbornly low coal prices.