Westmoreland Coal Company has announced that it has secured a new financing commitment for US$110 million from an ad hoc group of the company’s existing secured creditors holding approximately 79% of its term loan and approximately 79% of its senior secured notes (Ad Hoc Group).
Proceeds from the financing will provide additional liquidity and will be used to fully repay both the San Juan term loan and the existing asset-based revolvers, simplifying Westmoreland’s capital structure. The additional liquidity will provide more time for the company and its advisors to continue negotiations with the Ad Hoc Group to develop a comprehensive restructuring plan that will right-size the company’s capital structure and better ensure the long-term viability of Westmoreland.
“We appreciate the confidence our secured creditors continue to show through their increased financial support and their constructive ongoing dialogue,” said Westmoreland’s Interim Chief Executive Officer, Michael Hutchinson.
“Today’s announcement underscores the value Westmoreland delivers to its communities, customers and employees today and will deliver long into the future. Securing this financing is a meaningful step towards simplifying our capital structure while providing additional liquidity to the parent. This financing also provides us with the financial flexibility to develop a longer-term plan while soliciting input from a number of our key constituents, who all want to see Westmoreland continue to grow and prosper. In the months ahead, we will continue our evaluation and determine the appropriate strategic, operational and financial structure to support the continued future growth of our business.”
Read the article online at: https://www.worldcoal.com/coal/23052018/us110-million-new-financing-commitment-secured-by-westmoreland-coal/