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CONSOL Energy prices US$75 million of solid waste disposal revenue bonds

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World Coal,

CONSOL Energy Inc. has announced that it has priced US$75 million of tax-exempt solid waste disposal revenue bonds to be issued through the Pennsylvania Economic Development Financing Authority (PEDFA). The bonds will have a 30-year maturity and were priced in an initial 7-year term rate period with an interest rate of 9%. The bonds will be subject to a mandatory tender at the end of the initial term rate period.

"We are very appreciative for the support from PEDFA for our solid waste disposal project in Greene County," said Jimmy Brock, President and CEO of CONSOL Energy Inc. "We are very proud of creating and supporting hundreds of high-paying jobs in southwest Pennsylvania and creating a positive impact on numerous communities across the state. This project highlights our continued environmental commitments and support for the economy of Southwest Pennsylvania."

The company received orders of approximately US$170 million, highlighting the strength of its assets and resulted in a competitive initial fixed interest rate. The bonds will be secured on a second-priority basis, on parity with the existing outstanding second lien notes and behind the company’s senior credit facility, by liens on substantially all of the assets of the company and the subsidiary guarantors. It is expected that the bonds will be issued on or about 13 April 2021, upon completion of customary closing conditions and deliveries.

"We are very pleased with the strong response to our offering and support of our financing partners," added Mitesh Thakkar, Chief Financial Officer of CONSOL Energy Inc. "The oversubscribed offering demonstrates the confidence in CONSOL's world-class asset base and our strategy. This successful transaction also is a testament to CONSOL's ability to continue to access the capital markets, particularly for a 7-year duration financing."

In keeping with the requirements of the tax-exempt issuance, the proceeds will be used to finance the already ongoing expansion of the coal refuse disposal areas at the company's Bailey Preparation Plant in Graysville, Pennsylvania, US, which will support current and future mining at the Pennsylvania Mining Complex. The company expects to receive the bond proceeds over the next 2 years or so, as qualified work is completed. This financing does not change the capital expenditure guidance provided by the company.

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