Arch Coal, Inc. has announced that it has successfully completed an amendment to its credit agreement to further reduce the interest rate on its senior secured term loan facility.
The new interest rate for the approximately US$300 million term loan facility is LIBOR plus 275 basis points – reflecting a 50 basis point reduction from its previous level and representing one of the lowest rates in the coal industry. The LIBOR floor remains at 1.0%. There is no change to the maturities as a result of this repricing amendment. The reduction in the interest rate is expected to generate incremental annual cash interest savings of US$1.5 million.
"We are extremely pleased to complete another successful repricing of our senior secured term loan," said John T. Drexler, Arch's Chief Financial Officer. "Through our refinancing and repricing efforts, since 5 October 2016, we have reduced the interest rate on our term loan by a total of 625 basis points and have lowered our interest expense by approximately US$22 million on an annualised basis. We sincerely thank our lenders for their continued confidence and support."
Credit Suisse acted as sole lead arranger on the transaction.
Read the article online at: https://www.worldcoal.com/coal/04042018/arch-coal-amends-credit-agreement/