Cloud Peak Energy Inc. announced that it has completed its refinancing of its $500 million revolving credit facility. Michael Barrett, Executive Vice President and Chief Financial Officer, commented, "We are pleased to have extended the tenure of our credit facility and relaxed certain covenants, resulting in increased available capacity under the revolver. Had the new borrowing facility been in place at year end our total available liquidity would have been approximately $843 million."
On February 21, 2014, Cloud Peak Energy Resources LLC (the "Company") entered into a Credit Agreement with PNC Bank, National Association, as administrative agent, and a syndicate of lenders (the "Credit Agreement"). The Credit Agreement provides the Company with a senior secured revolving credit facility with a capacity of up to $500 million that can be used to borrow funds or issue letters of credit. The Credit Agreement replaces the Company's previous $500 million senior secured revolving credit agreement dated June 3, 2011. Subject to the satisfaction of certain conditions, the Company may elect to increase the size of the revolving credit facility and/or request the addition of one or more new tranches of term loans in an amount up to the greater of (i) $200 million or (ii) the Company's EBITDA (which is defined in the Credit Agreement) for the preceding four fiscal quarters.
Loans under the Credit Agreement bear interest at LIBOR (London Interbank Offered Rate) plus an applicable margin of between 2.00% and 2.75%, depending on the Company's leverage ratio.
The company's obligations under the Credit Agreement are secured by substantially all of its assets and substantially all of the assets of certain of its subsidiaries, subject to certain permitted liens and customary exceptions for similar coal financings. The Company's obligations under the Credit Agreement are also supported by a guarantee by the Company's domestic restricted subsidiaries and may in the future be guaranteed by Cloud Peak Energy Inc.
Cloud Peak Energy Inc. is headquartered in Wyoming and is one of the largest U.S. coal producers and the only pure-play PRB coal company.